It’s difficult timing for drivers. Oil infrastructure in the Gulf shutting down for Hurricane Isaias could send prices up.
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The hurricane has shut down rigs and refineries, stopping 71.5% of daily oil production and 58.8% of daily natural gas production in the Gulf, according to the Marine Minerals Administration.
Fuel trucks are on the move Friday from a terminal in Doraville as people filling up see the prices, Channel 2’s Linda Stouffer reports.
“I’m kinda feeling it,” one driver said.
“Now you have to count and see what you buy. It’s just been a hard time,” another driver said.
“I have to determine when I’m going to work and not going to work and which job I’m going to go to. I’m a nurse,” a third driver said.
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“I mean, you get a double whammy, if you will. So the hurricane can shut down, it does shut down a bunch of refineries,” said Dr. Tom Smith Emory Goizueta Business School.
Smith says add to that people fueling up, “putting a lot of gas into their generators or into some kind of a holding tank so that those generators can stay on. But yeah, a huge increase in demand and a decrease in supply because of the refineries shutting down.”
And then you’ll start seeing an escalation in gas prices.
Triple AAA says the effect on prices will be clearer after we see what damage Isaias does.
One thing to watch is whether any of that oil infrastructure is damaged tonight.
Flooding could take more than a week to clean out, leaving refineries offline even longer.
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