Get ready for a big jump in gasoline prices because of the flooding in Texas.
Tom Kloza, global energy analyst at the Oil Price Information Service in Wall, New Jersey, says gas prices could rise as much as 60 cents a gallon because of refinery shutdowns that are reducing the supply.
“We’re reliant here in the Middle Atlantic on a lot of gasoline that comes from the Gulf Coast and a lot of that has been compromised at least for a period of two weeks. We’re also not getting the imports because the imports are going to South and Central America where they desperately need Gulf Coast gas that’s not getting delivered.”
Kloza says says a pipeline that delivers a lot of gasoline to the Northeast has not been able to receive product from Texas refiners.
“They are pumping from the Louisiana refiners to the Northeast but it’s at a much lower rate and it’s going to intermittent. They’re hoping to get some contribution from Texas refiners as early as Sunday.”
The disruption in gasoline output is causing lines at gas stations in some parts of the country, but Kloza doesn't expect that here.
"A particular off-brand company might not have any because they're last on the totem pole in being supplied, but no I don't think it will take great effort to find gasoline. I don't think this is going to be a repeat of Sandy, but it could be if people panic and that's the thing you always worry about."
Kloza says gas prices could start ebbing after refineries resume production.
“Once we get the refining system back up and running, and after that 30 days or so of catchup, I think prices will drop quite a bit. I think we might go up to somewhere in the two-seventy to two-seventy-five neighborhood. I wouldn’t be surprised if we’re back below two-and-a-quarter when it’s Christmas shopping season “