Hurricane Harvey's impact means gas prices are on the rise
02 September, 2017, 00:16 | Author: Essie Rivera
"And they will - there's a shortage coming out of the United States", McTeague said. "First is that gas retailers are trying to restore their margins".
McTeague and Roger McKnight, chief petroleum analyst for EnPro International, agreed that prices on the Prairies will be stable over the weekend after rising by five to 10 cents to about $1.10 per litre in the past few days.
Gas retailers in Canada are not facing a potential shortage due to the slowdown in Texas production, but Canadian prices depend on US prices, with Eastern Canada taking its cue from New York, Albany, Syracuse and Buffalo, and much of Western Canada looking to Chicago and Minneapolis.
Harvey, which hit the Houston area before it moved to the Louisiana coast, resulted in the shutdown of roughly 25 per cent of the refining output of the United States, Reuters reported. Now there is no indication the refineries have been damaged by the hurricane or resulting flooding. "It just isn't possible with all the movement and pipes to keep producing gas".
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Meanwhile in Montreal, he said the price is expected to jump eight cents to as much as $1.42 per litre at some point over the weekend or early next week.
"This is normally the time where refineries go into scheduled maintenance, but with all these refineries going into what I'll call 'unscheduled maintenance, ' it will put pressure on the ones still running to go on longer", Mr. McKnight said.
Retail prices in New Brunswick are largely based on what the stock market in NY says.
Industry experts say the "steep price hikes" are likely to be seen in Montreal, and throughout North America, over the next several weeks, as the storm continues.
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