Ahead Of Ike, Gasoline Spikes
HOUSTON (AP) – The threat of Hurricane Ike pushed gasoline prices higher today, something Gustav failed to do.
The latest storm pushed toward the mass of petroleum refineries along the western coach of the Gulf of Mexico today.
Irving-based Exxon Mobil, San Antonio-based Valero Energy and Houston-based ConocoPhillips and Marathon Oil were among the companies halting operations at refineries on the Texas coast, primarily in the Houston area.
Refineries along the upper Texas Gulf Coast account for about one-fifth of the nation’s refining capacity. Exxon Mobil’s refinery in Baytown, outside Houston, is the nation’s largest.
Supply concerns sent wholesale gasoline prices soaring today. The wholesale price for gasoline produced on the Gulf Coast jumped to record levels between $4 and $5 a gallon. Some analysts blame the spike on “panic buying” over Ike’s potential to disrupt fuel supplies.
How much gas prices rise depends largely on how long refineries remain shuttered after the storm passes. The average retail price for regular unleaded gasoline was $3.67 today, according to the Oil Price Information Service, AAA and Wright Express.
The Oil Price Information Service says prices could climb sharply in the Gulf Coast region, perhaps by 50 cents a gallon, if wholesale prices remain at inflated levels for a sustained period.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
