Gas Station Shortages Expected In Texas As Gulf Coast Premiums Hit Record Highs

Tyler Durden's picture

According to retail fuel supplier Mansfield Oil, short-term fuel supplies for Houston and San Antonio are significantly impacted by Tropical Storm Harvey.

Bloomberg reports that San Antonio and Houston supplies are at code red, while Corpus Christi was downgraded to code orange as terminals have come online already and limited spot supplies are available.

For now, reports a number of stations are still open, though prices are rising...

However, the Gulf Coast CBOB gasoline spread to NYMEX futures rose 9.50c to a 16.50c/gal. premium - the highest on record in data from 2012.

The U.S. could see 30 percent of refining capacity shut on Harvey and if the storm moves up the Texas coast toward Louisiana, then additional shutdowns could occur in Port Arthur and Beaumont as well as in Lake Charles, Louisiana, Tudor Pickering Holt & Co. LLC analysts said. Port Arthur is home to the nation’s largest refinery operated by Motiva Enterprises LLC.

“There’s a big drop-off suddenly in crude oil demand,” John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund, said by telephone. “We have a supply disruption event in gasoline production. Gasoline demand in the balance of the country is still elevated, so we could see a real impact on gasoline inventories if these refineries are unable to get restaffed quickly.”

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Farmerz's picture

I'll still take most of those prices over what we pay here in Calif.

Canadian Dirtlump's picture

I love it. Oil prices skid, and gas prices explode. Gotta love this industry.

tmosley's picture

That is what happens when your refiners shut down.

Shitonya Serfs's picture

What the status on the Tesla quick charge stations?

MozartIII's picture

In Houston, they're all wet!

Never One Roach's picture

Good luck getting to a gas station.

Best honker down with your water, food supply and ammo and wait it out if at all possible.

Even the giangtic central post office in north Houston is closed until at least Wednesday night but my postal carrier who lives two doors down says most PO's will be close the entire week due to flooding. In fact, they have loads of mail and packages that have been loggedin that can't be moved out because of flooding.

And yet there is not alert on Amazon to their buyers about delays.


Winston Churchill's picture

Hows those crypto helping peeps in Houston who have them again ?

Must be a real boon sitting in the dark and cold cuddling them.

Oh wait

WarPony's picture

Compare to the road closures: (roads covered with water - ZOOM OUT): - even if you get fuel, you're not going anywhere.

MozartIII's picture

Do they still allow emissions in california? Last I heard the paid the san fran guys money to run around and plug up all the cattle.

Gen. Ripper's picture

No doubt. And I've heard how much cheaper it is to live in TX so these Texans must have Texas sized savings accounts to smooth it over.

MozartIII's picture

Good for a quick run. Whoever didn't see this coming last week has been following Gartman.

Cloud9.5's picture

Pay attention folks.  God in his infinite wisdom is giving you a preview of systemic collapse.  I have been through this four times in my life.  The time to prepare is beforehand, not during and not after.



Ben A Drill's picture

4th largest city in the USA. They can raise the price all they want. How are you going to drive your car if it's underwater?

MozartIII's picture

Just think of all the cheap used autos that will flood the market. After they have been de-flooded.

J Jason Djfmam's picture

Dey ain't got no gas, but lotsa water with gas 'nit.

Eeesh's picture

Don'tDon't  forget that not only will the gas prices rise, but we will also get some pretty nice disease epidemics in the aftermath. 

Ms No's picture

I often wonder when you see people casually hanging out in that water if they realize that the sewers have emptied into it.  I also wonder where all the snakes and bugs go.  Hopefully not sharing space with some poor old man in his attic.


GatorMcClusky's picture

Snakes bugs gasoline oil dog poop lawn chemicals.
And starting next week is the mosquito problem.

moorewasthebestbond's picture

Price gougers will receive a pat on the back.

samsara's picture

I remember when the gasoline pipeline to Phoenix burst, causing a temporary panic.

Everybody filled up/ topped up and in one day they drained every gallon of gas in Phoenix.

Gas is a Just In Time commodity like food trucks. It runs out quick without a constant supply.

Phoenix Lines Up for Gasoline

"Of the city's 1,000 gasoline stations, up to half are completely dry at any given time, according to David Cowley, spokesman for Arizona AAA."

DC Beastie Boy's picture

Yeah I heard there was a hurricane down there.

GTFOOH with the fear shit

Ms No's picture

I am staying in Flagstaff.  I saw quite a few oilies with fifth wheels when I driving around trying to find that damn meteor strike crater this morning.  Two were welding rigs (figures the welders would be the first ones to drag  Those don't do well in hurricanes. 

There is still plenty of room for them here.  A decent hotel was 200 last week but only 100 this week (parents dropping kids off to college last week).  There are always hotels cheaper than that also.  They raise the rates at night so reserve early, by noon preferably.  Its 85 in the day and 50 at night, don't go anywhere near Phoenix right now.  Its not worth it and you'll just want to go back into the hurricane.  It sounds like a lot of NM is pretty full.  I would reserve here if I was a refugee and needed to be gone for a few more days.



CrazyCanadian's picture

Hopefully Shiela Jackson Lee is stuck in the flood.

sirsmokum's picture

Just Texas? Right. Always the excuse the gassers use to raise the price on something the people absolutly need everywhere.

Ms No's picture

According to headline news, now that the water has receded some they are going to open some spillways which "could raise some water levels above where they were before".  They aren't saying what locations they are going to have to open spillways.  That is just another way the government can make things worse if they make the wrong decisions.  There is way over 100 tornado warnings in Louisiana and Mississippi.  They storm will head in that way and they will certainly have flooding.  I hope nobody was dumb enough to evacuate in that direction.


GatorMcClusky's picture

They are opening Addicks and Barker reservoirs. No downstream impact yet.

GatorMcClusky's picture

They are opening Addicks and Barker reservoirs. No downstream impact yet.