collected by :Haron Adler
For Americans outside the disaster zone, the storm will hit home in the form of higher gas prices as Harvey wreaks havoc on the hub of U.S. energy production.
The latest victim is Motiva’s massive refining facility in Port Arthur, the largest in the country.
“Our whole city is underwater right now,” Port Arthur Mayor Derrick Freeman said in a Facebook post.
The refineries that have closed down, including Port Arthur, account for more than 20 percent of total U.S. refining capability, federal data show.
“Right now, for your summer driving prices, you’re looking at a couple months of elevated gas prices at the pump,” Ms. Leonard said.
Harvey throws energy markets into turmoil
By the time Harvey made landfall last month, the US had become a big exporter of crude oil and refined products.
The shale revolution had turned the world energy model on its head.That is why the reaction of global energy markets has been so confused in the days since Harvey hit.
“Hurricane Harvey is a national tragedy, but the impact on the national economy will be minimal,” was the verdict of Paul Ashworth, chief US economist at consulting firm Capital Economics.
In the past, the risk has always come from threats to oil supply, usually in the Arabian Gulf, and usually because of security issues in the region.
US storage tanks are already full of shale oil.This is an unprecedented situation in world energy markets.
Renewed euro strength pushed down European stock markets, with Germany’s blue-chip index 0.5% lower and France’s CAC 40 slipping by 0.4%.
“The strong euro is weighing on European stock markets,” said London Capital Group analyst Ipek Ozkardeskaya.
US stock futures were also a touch lower, suggesting a softer opening on Wall Street later in the day.
After surging Friday, oil prices were mixed Monday as markets tried to gauge Harvey’s impact on oil production and refinery demand.
The dollar index — which tracks the US currency against six major rivals — fell to as low as 92.372, its weakest since early May 2016, before recovering a little to trade 0.3% down at about 92.489.