Hurricane Isaias is strengthening as it heads toward the Gulf Coast, and while forecasts suggest it will miss the oil industry’s biggest hubs, two refineries in Mississippi and Alabama are squarely in the risk zone. Chevron’s Pascagoula facility and Vertex Energy’s Mobile refinery together account for about 2.4% of U.S. refining capacity. If either loses power or takes on flooding, they could be down for weeks.
The numbers already aren’t pretty. Diesel prices are above $6 a gallon, and Houston analyst Andrew Lipow says a major shutdown could push them toward $7. Brent crude was above $104 a barrel Friday, with Middle East conflict and the war in Ukraine keeping pressure on global supplies. Offshore, roughly 1.3 million barrels a day of Gulf production is shut in and 121 platforms have been evacuated, though most of that is expected to come back online quickly once the storm passes.
Experts are split on what it all means for your wallet. Some see a dollar spike, others expect the impact to stay mostly along the Gulf Coast. Either way, if you’re on the Suncoast, a full tank before the weekend is never a bad idea. What’s your strategy when storm season meets rising fuel prices?
