Gasoline prices tick up as oil costs hit two-year excessive


Jordan Blum, Houston Chronicle

Updated 7:11 am, Monday, November 6, 2017

  • A fuel truck driver resupplies the Shell station at Weslayan and the U.S. 59 frontage road on Friday. With many refineries closed on the Gulf Coast, the fuel supply is being pinched. Photo: Yi-Chin Lee / Houston Chronicle, HarveyGas / Houston Chronicle 2017



Photo: Yi-Chin Lee / Houston Chronicle, HarveyFuel

A gas truck driver resupplies the Shell station at Weslayan and the U.S. 59 frontage highway on Friday. With many refineries closed on the Gulf Coast, the gas provide is being pinched.

A gas truck driver resupplies the Shell station at Weslayan and the U.S. 59 frontage highway on Friday. With many refineries closed on the Gulf Coast, the gas provide is being pinched.


Photo: Yi-Chin Lee / Houston Chronicle, HarveyFuel

Gasoline prices tick up as oil costs hit two-year excessive


Gasoline prices surged nationwide for the primary time in practically eight weeks after oil costs hit a two-year excessive.

Oil costs had been already on the rise, however jumped larger after an anti-corruption purge in Saudi Arabia seen as an try and consolidate energy across the crown prince led to the arrests of a number of different princes and ministers. Crown Prince Mohammad bin Salman, 32, has expressed badist for extending oil manufacturing cuts amongst the Organization of the Petroleum Exporting Countries.


The U.S. benchmark for oil hit $56 a barrel Monday morning, whereas the European benchmark within the North Sea ticked above $62.

In the U.S., gasoline costs rose 6.5 cents a gallon within the final week as much as $2.53 for a gallon of standard unleaded gas. In the Houston space nonetheless taking part in catch up after Hurricane Harvey, gasoline prices nonetheless dipped by 1 cent all the way down to $2.19 a gallon.

Typically, gas costs are falling this time of yr due to declining demand after the bust summer season driving season and from refineries altering to cheaper winter-grade gasoline provides.

RELATED: Higher oil costs may finish post-Harvey slide in gasoline value

Apart from the oil value surge, gasoline costs additionally might be affected by many oil refineries present process fall upkeep work, a gas pipeline leak that feeds the Great Lakes and Midwest areas, and higher-than-anticipated gas demand within the fall, mentioned Patrick DeHaan, head of petroleum evaluation for GasBuddy, which tracks gas pricing.

“It’s been a frenzied week at fuel pumps across the country but, without a hurricane driving up prices, many motorists have been dumbfounded about what’s taking place with the unseasonable upward trend,” DeHaan mentioned. “Such a strong weekly upward move is rare in the fall, but is explained by a confluence of factors.”

The common price of a gallon of gasoline within the Houston space remains to be 9 cents larger than earlier than Harvey, whereas the nationwide common is about 20 cents above its pre-storms common, in accordance with information collected by GasBuddy.

Harvey knocked out practically 1 / 4 of the nation’s oil refining capability to pump out gas, inflicting gasoline prices to surge practically 20 p.c, however practically all of that refining capability is again on-line now.


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