Hurricane Harvey could boost gas prices in Canada after this week
Massive flooding in southeast Texas has already impacted gasoline prices in a surrounding area, and one consultant says a same could shortly occur in Canada.
Hurricane Harvey’s ruins left many of Houston underwater on Sunday, and a National Weather Service says it’s not over yet: Some tools of Houston and a suburbs could finish adult with as many as another 1.3 metres of rain.
The charge has influenced about 2.2 million barrels per day of enlightening ability in a United States, including ExxonMobil, Shell and Phillips 66 operations that began shutting down Sunday.
“They are not creation gasoline, they’re not creation diesel fuel,” pronounced Randy Ollenberger, handling executive of BMO Capital Markets, “so that’s tightening adult those markets not usually here in North America, though globally since a United States was exporting both gas and diesel to Europe and South America.”
And Canada too, that is because gasoline prices that have jumped about 7 cents a litre in a week might come north next.
Depending on how enlarged enlightening ability is out for, a impact on Canada could be even worse, says Dan McTeague, comparison petroleum researcher with cost comparing website GasBuddy.com.
“Hurricane Harvey’s compared flooding and longer than approaching case over a Texas refinery quarrel is approaching to see high cost hikes during a pumps opposite North America for a subsequent few weeks,” McTeague said.
“With a apportionment of sum U.S. gasoline prolongation close in due to a enlarged effects of Hurricane Harvey, Canadians should design a conspicuous boost beginning this Wednesday.”
Up to 15 cents a litre in Montreal
Vancouver, Victoria and many of B.C. should design a travel of about 3 cents a litre, while Calgary, Edmonton, Regina, Saskatoon and Winnipeg might see prices arise 3 to 8 cents a litre
Toronto and many of Ontario are in store for a five-cent hike, while Montreal might see a biggest burst — as many as a 15-cent boost to about 127.9 cents a litre by mid-week.
“For a Maritimes and Newfoundland, that follow final week’s prices underneath their regulated cost regimes, a 5 cent a litre boost should be approaching with a probability that their ‘interrupter clause’ might be deployed before Thursday and Friday,” McTeague pronounced Monday.
Broader impact
Beyond siphon prices, a charge has a intensity to take a punch out of the North American economy, if a complicated strike to a appetite zone spreads — and lasts.
“I’m not certain if we can unequivocally quantify how many that will be right now,” Ollenberger said. “It unequivocally depends on a duration, though it will have an impact.
“The longer this goes on — in terms of these outages — a bigger a impact will be.”
Article source: http://www.cbc.ca/news/business/hurricane-harvey-economic-impact-1.4264874?cmp=rss