America lost around 17% of its total oil refining capacity due to damage caused by Hurricane Harvey. Not only did the storm cause damage and flooding to oil refineries, they caused the temporary loss of shipping channels and damaged or shutdown several key oil pipelines, resulting in a two year record high in gasoline prices.
The average gallon of gasoline is around 20 cents higher today than it was before the recent round of hurricanes and America’s drivers are feeling the pinch at the pumps.
Fortunately, Jim Zarroli of NPR tells us that the refineries are finally starting back up and will soon be at full capacity. You can listen to his story on NPR here:
Chris Isidore of CNN Money recently interviewed Tom Kloza, chief oil analyst for the Oil Price Information Service. Currently the average price for a gallon of gas is $2.65, Kloza predicts that the price of a gallon of gas will soon be around $2.25, and will continue to fall so that by Christmas time American’s will be paying less than $2.00 a gallon!
What do you think Nation? Have you felt that pinch at the pump? Are you looking forward to good long weekend drive once gas prices fall back down?
Keep driving my friends!