Gas prices surging in Chicago, nationwide in Harvey's wake

Gas prices surging in Chicago, nationwide in Harvey's wake

The effects of Hurricane Harvey are already showing up in USA gas prices.

Gas prices here might not shift as much as elsewhere in the country for the same reason the West Coast's gas prices tend to be higher than the nation's, Mac said. However, higher prices are not expected to hinder Labor Day plans for the unofficial end of summer, according to AAA's annual Labor Day forecast.

The latest update from AAA shows a more than five-cent jump in the national average in just the past few days. As many as 11 ports were shut as Harvey hit the Texas coast, leaving 28 tankers laden with more than 18 million barrels of overseas oil drifting offshore as of Wednesday night. His image showed prices at almost $6.70 per gallon. The average price on August 25 was $2.35 in the state.

"Prices are soaring", said Patrick DeHaan, senior petroleum analyst at GasBuddy. USA crude prices, however, have fallen more than 1.6% over the past week. "Everything from ME down to Florida is now affected", he told CTV News Channel Friday.

But AAA warned on Thursday night that "motorists should expect gas prices to rise another 5-10 cents in the near-term due to a combination refinery and pipeline shut downs, tightened access to supply levels in the Gulf, and anticipated high gasoline demand surrounding Labor Day weekend".

"There's plenty of gasoline", he said.

"It looks like everyone thinks that the hurricane will affect refining more than production", said Tony Nunan, oil risk manager at Mitsubishi Corp. But McTeague says Canada simply isn't producing enough to meet that demand.

The shutdown is causing a shortage of gasoline, including gas into the Carolinas. "And we're trying to manage the problem in the short term", Craddick said.

In some markets, such as Vancouver, gasoline is being imported from Washington State, he said.

Officials say they are not out of the woods just yet.

"The U.S. Secretary of Energy has authorized the Strategic Petroleum Reserve (SPR) to negotiate and execute an emergency exchange agreement with the Phillips 66 Lake Charles Refinery", Jessica Szymanski, Department of Energy spokeswoman, said in a statement.

Because of the refineries closing, Gas Buddy analysts expect another 20 to 35 cent increase for a gallon of gas in the next two to three weeks.

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