Hurricane Harvey spikes area gas prices
WEST LAFAYETTE, Ind. (WLFI) – Harvey continues to slam Texas, and in its wake, is set to cause some steep economic damage.
Investors are watching the impact of the storm. Houston is the capital of the U.S. oil and gas industry. Flooding from Harvey has knocked out 11 percent of U.S. oil refining capacity and a quarter of production. Purdue agriculture economist Wally Tyner said the storm is raising prices at the gas pump, but it shouldn’t last very long.
“We already are seeing an increase in gas prices. That will continue for a few days, but only for a few days. After a week or so, we’ll begin to see it taper back down,” Tyner said. “This is going to be a spike because of the hurricane, but it will come down just about as quick as it went up.”
Tyner said oil companies are stabilizing gas prices by importing more foreign oil until production goes back online in the Gulf of Mexico.