Gasoline prices, which rose last week (ten cents in my area), could jump further.
Valero, the nation’s largest oil refiner, closed its Corpus Christi and Three Rivers refineries. ExxonMobil shut down the Baytown complex, one of the nation’s largest oil and petrochemical refineries. Shell shut down the Deer Park refinery and chemical plant. About 2,500 ships are loaded and unloaded there every year.
If past patterns are any indication, gross domestic product data will reflect a negative impact from the hurricane in the third quarter and the fourth quarter will look stronger.
Harvey’s Damage Will Be Worse Than Data Suggests
Houston is the heart of the U.S. energy sector and the 4th largest city in America. It is the 25th top GDP in the world. Local job growth has increased and home sales has accelerated. Texas oil rig numbers have been rising.
Harvey, so far, has damaged things that can be replenished or replaced.
Hurricane to Cost Tens of Billions of Dollars
It appears the overall U.S. economic toll will be minimal. This will teach us how the modern economy works. Financial markets show us that the ripple effects are slight. Investors didn’t seem to seek safety.
The damage to the refinery and oil production industry is real. This slowdown will surely keep gas prices at the pump higher.
