The spike in gas prices had been expected.
Oil prices moved sharply higher in U.S. trading on Tuesday with a break above the $48.00 p/b level in WTI helping to underpin confidence and trigger further buying with a peak just below $49.0.
The national average of $2.65 was up 27 cents from last week. According to the Gas Buddy price monitoring website, a gallon of regular this morning was $3.025.
"He shouldn't politicize or capitalize: he should say we're going to take an economic hit, and we've got to do something to help the economy and this tax cut will do it". "The impact of Harvey adds to existing woes". At one point, almost 30% of the nation's refining capacity along the Gulf Coast where shut or cut back because of flood waters.
Oil prices struggled on Monday, while gasoline futures slumped on signs that the damage from storm system Harvey to the Gulf coast energy infrastructure was not as bad as initially feared.
Alberto Hernandez, a watch supervisor at the U.S. Coast Guard, said on Monday there were ships exiting and entering the Houston Ship Channel, which links the busiest petrochemical port to the Gulf of Mexico, on Monday.
The US government pulled out of the strategic petroleum reserve for the first time in five years and agreed on Friday to release an additional 3.5 million barrels over one million barrels, after it already agreed to withdraw for a refinery in Louisiana. That price level continued through Labor Day. and was still holding on Tuesday morning, September 5. Enterprise Products Partners said it restarted lines Monday; Colonial Pipeline Co said it planned to restart the gasoline line between Houston and Hebert, Texas on Tuesday.
Companies also face problems with pressure imbalance and high natural gas levels at new shale oil wells in the Permian Basin, the largest US oilfield. Analysts said oil companies had adjusted to lower prices by trimming costs and thanks to enhancing refinery margins.