Hurricane Harvey: What does the worst storm to hit the US in 12 years mean for oil and gas prices?

 Texas is preparing for Hurricane Harvey, which may be the most destructive storm to hit the US mainland in nearly a decade. However, what implications will the category three storm have for the region's oil and gas industry?

Employees at Royal Dutch Shell, Anadarko Petroleum, and ExxonMobil, among other energy companies, have already been evacuated from offshore platforms in the Gulf of Mexico, which is home to approximately 17% of the nation's crude oil output.

A tempest flood cautioning implies there is a refinery fluid catalytic cracking units Market from rising water moving inland from the shore, during the following a day and a half.

The Gulf Coast accounts for more than 45% of the nation's oil refining capacity, with a third located between Corpus Christi, Texas, and Lake Charles, Louisiana.

Price increases for gasoline and Oil prices reached a three-week high as the hurricane moved closer to Texas.

The consultant Andy Lipow of Lipow Oil Associates, based in Houston, stated:

Crude oil imports into the Texas Gulf Coast will significantly decrease as a result of this storm.

The benchmark in the United States, West Texas Intermediate, increased to $47.79 per barrel, while Brent crude increased to $52.45 from the previous close.

Some analysts believe that refineries that process less crude could also produce less gasoline and diesel fuel.

Although he did not anticipate widespread fuel shortages, Lipow told the Financial Times that Hurricane Harvey would raise national gasoline prices by five to ten cents per gallon.

Over the past two days, the price of gasoline futures contracts has increased by more than 3.5% to $1.65 per gallon.

What implications does Hurricane Harvey have for locals?

On the Texas coast, tens of thousands of people have been told to leave their homes in low-lying areas.

The coastal town of Corpus Christi's mayor, Joe McComb, stated:

When forecasters advise people to "beware of flash floods," I hope that they will pay attention. It is possible for flash floods to occur quickly and kill people.

Governor Greg Abbott of Texas declared a "state of disaster" in light of the forecasts for severe winds, extensive flooding, and torrential rain.

Texas will be able to quickly deploy resources for the emergency response effort in anticipation of the storm's hazardous conditions if it declares a state of disaster in advance.

In October 2005, Tropical storm Wilma struck the bank of Florida, leaving 87 individuals dead.