By Stephanie Yang and Alison Sider, Dow Jones Newswires
Gasoline prices surged Monday on concerns over a shortage in supply after Tropical Storm Harvey knocked out refining operations and traders tried to assess damage in the Houston area.
Harvey barreled into Texas on Friday as a Category 4 hurricane, the strongest to hit Texas in half a century, but has since been downgraded to a tropical storm. Still, on Monday it looked poised to move back over the Gulf of Mexico before coming back ashore, dumping more heavy rain on Houston and the surrounding area.
Traders remained focused on the possibility that Harvey may now approach Louisiana and that the onslaught could cause damage to fuel-making plants that could take weeks or even months to fix.
The storm had disrupted nearly 15 percent of U.S. refinery capacity as of Monday morning, and the number is climbing. Exxon Mobil Corp. said its 362,300-barrel-a-day refinery in Beaumont, Texas, is running at reduced rates. The total amount of refining capacity offline could rise as high as 30 percent if Harvey moves toward Louisiana, according to Houston energy investment bank Tudor Pickering Holt & Co.
![Neighbors used their personal boats to ...]()
Steve Gonzales, Houston Chronicle via AP
Neighbors used their personal boats to rescue Jane Rhodes, Sunday, Aug. 27, 2017, in Friendswood, Texas. Harvey made landfall in Texas on Friday night as the strongest hurricane to hit the U.S. in more than a decade. By Saturday afternoon it had been downgraded into a tropical storm, but it had dumped over a dozen inches of rain on some areas and forecasters were warning that it could cause catastrophic flooding in the coming days.
![A pedestrian crosses a street inundated ...]()
Charlie Riedel, The Associated Press
A pedestrian crosses a street inundated by floodwaters from Tropical Storm Harvey on Sunday, Aug. 27, 2017, in Houston, Texas.
![Two kayakers try to beat the current pushing them down...]()
Two kayakers try to beat the current pushing them down an overflowing Brays Bayou from Tropical Storm Harvey in Houston, Texas, Sunday, Aug. 27, 2017. (Mark Mulligan/Houston Chronicle via AP)
![A man wades through floodwaters from ...]()
David J. Phillip, The Associated Press
A man wades through floodwaters from Tropical Storm Harvey on Sunday, Aug. 27, 2017, in Houston, Texas.
![People seek shelter from the aftermath ...]()
Elizabeth Conley, Houston Chronicle via AP
People seek shelter from the aftermath of Hurricane Harvey at the George R. Brown Convention Center in Houston on Sunday, Aug. 27, 2017. Rising floodwaters from the remnants of Hurricane Harvey chased thousands of people to rooftops or higher ground Sunday in Houston, overwhelming rescuers who fielded countless desperate calls for help.
![Terranysha Ferguson holds her son, Christian ...]()
Elizabeth Conley, Houston Chronicle via AP
Terranysha Ferguson holds her son, Christian Phillips as she sits with the rest of her family at the George R. Brown Convention Center in Houston on Sunday, Aug. 27, 2017. Rising floodwaters from the remnants of Hurricane Harvey chased thousands of people to rooftops or higher ground Sunday in Houston, overwhelming rescuers who fielded countless desperate calls for help.
![D'Ona Spears, center, reacts as she ...]()
LM Otero, The Associated Press
D'Ona Spears, center, reacts as she is told that she cannot bring her dog Missy into the shelter for flood evacuees with her daughter Natalie, left, at the convention center in downtown Houston, Texas, Sunday, Aug. 27, 2017. Spears and her family walked to the shelter after her home was flooded with water from the Buffalo Bayou.
![A man walks through floodwaters from ...]()
Charlie Riedel, The Associated Press
A man walks through floodwaters from Tropical Storm Harvey as he evacuates his home on Sunday, Aug. 27, 2017, in Houston, Texas.
![Wilford Martinez, right, is rescued from ...]()
David J. Phillip, The Associated Press
Wilford Martinez, right, is rescued from his flooded car by Harris County Sheriff's Department Richard Wagner along Interstate 610 in floodwaters from Tropical Storm Harvey on Sunday, Aug. 27, 2017, in Houston, Texas.
![Wilford Martinez, bottom, grabs the median ...]()
David J. Phillip, The Associated Press
Wilford Martinez, bottom, grabs the median as he is rescued from his flooded car along Interstate 610 in floodwaters from Tropical Storm Harvey on Sunday, Aug. 27, 2017, in Houston. The remnants of Hurricane Harvey sent devastating floods pouring into Houston Sunday as rising water chased thousands of people to rooftops or higher ground.
![Two people walk down a flooded ...]()
David J. Phillip, The Associated Press
Two people walk down a flooded section of Interstate 610 in floodwaters from Tropical Storm Harvey on Sunday, Aug. 27, 2017, in Houston, Texas.
![Residents are rescued from their homes ...]()
David J. Phillip, The Associated Press
Residents are rescued from their homes surrounded by floodwaters from Tropical Storm Harvey on Sunday, Aug. 27, 2017, in Houston, Texas.
![Waters rush from a large sinkhole ...]()
John Mone, The Associated Press
Waters rush from a large sinkhole on Highway FM 762 in Rosenberg, Texas, near Houston, Sunday, Aug. 27, 2017. Police say the sinkhole has opened on the Texas highway as Tropical Storm Harvey dumps more rain on the region.
![Men checks on a boat storage ...]()
Eric Gay, The Associated Press
Men checks on a boat storage facility that was damaged by Hurricane Harvey, Saturday, Aug. 26, 2017, in Rockport, Texas.
![Jennifer Bryant looks over the debris ...]()
David J. Phillip, The Associated Press
Jennifer Bryant looks over the debris from her family business destroyed by Hurricane Harvey Saturday, Aug. 26, 2017, in Katy, Texas. Harvey rolled over the Texas Gulf Coast on Saturday, smashing homes and businesses and lashing the shore with wind and rain so intense that drivers were forced off the road because they could not see in front of them.
![A truck pushes through floodwaters from ...]()
David J. Phillip, The Associated Press
A truck pushes through floodwaters from Tropical Storm Harvey on Sunday, Aug. 27, 2017, in Houston, Texas.
![Residents wade through floodwaters from Tropical ...]()
David J. Phillip, The Associated Press
Residents wade through floodwaters from Tropical Storm Harvey Sunday, Aug. 27, 2017, in Houston, Texas.
![Residents wade through floodwaters from Tropical ...]()
David J. Phillip, The Associated Press
Residents wade through floodwaters from Tropical Storm Harvey Sunday, Aug. 27, 2017, in Houston, Texas.
![Residents are rescued from their homes ...]()
David J. Phillip, The Associated Press
Residents are rescued from their homes surrounded by floodwaters from Tropical Storm Harvey on Sunday, Aug. 27, 2017, in Houston, Texas.
![An abandoned vehicle sits in flood ...]()
LM Otero, The Associated Press
An abandoned vehicle sits in flood waters on the I-10 highway in Houston, Texas, Sunday, Aug. 27, 2017.
![Two kayakers try to beat the ...]()
Mark Mulligan/Houston Chronicle via AP
Two kayakers try to beat the current pushing them down an overflowing Brays Bayou from Tropical Storm Harvey in Houston, Texas, Sunday, Aug. 27, 2017.
![Residents wade through floodwaters from Tropical ...]()
David J. Phillip, The Associated Press
Residents wade through floodwaters from Tropical Storm Harvey Sunday, Aug. 27, 2017, in Houston, Texas.
![A destroyed buildingand vehicles at Rockport ...]()
Mark Ralston, AFP/Getty Images
A destroyed buildingand vehicles at Rockport Airport after heavy damage when Hurricane Harvey hit Rockport, Texas on Aug. 26, 2017. Hurricane Harvey left a trail of devastation Saturday after the most powerful storm to hit the US mainland in over a decade slammed into Texas, destroying homes, severing power supplies and forcing tens of thousands of residents to flee.
![Brad Matheney offers help to a ...]()
Brendan Smialowski, AFP/Getty Images
Brad Matheney offers help to a man in a wheelchair in a flooded street while Hurricane Henry passes through Texas Aug. 26, 2017 in Galveston, Texas. Hurricane Harvey left a trail of devastation Saturday after the most powerful storm to hit the US mainland in over a decade slammed into Texas, destroying homes, severing power supplies and forcing tens of thousands of residents to flee.
![People walk through flooded streets as ...]()
Brendan Smialowski, AFP/Getty Images
People walk through flooded streets as the effects of Hurricane Henry are seen Aug. 26, 2017 in Galveston, Texas. Hurricane Harvey left a trail of devastation Saturday after the most powerful storm to hit the US mainland in over a decade slammed into Texas, destroying homes, severing power supplies and forcing tens of thousands of residents to flee.
![A road remains flooded after Hurricane ...]()
Nick Wagner, Associated Press
A road remains flooded after Hurricane Harvey ripped through Rockport, Texas, on Saturday, Aug. 26, 2017. The fiercest hurricane to hit the U.S. in more than a decade spun across hundreds of miles of coastline where communities had prepared for life-threatening storm surges — walls of water rushing inland.
![A laundromat's machines sit exposed in ...]()
Nick Wagner, Associated Press
A laundromat's machines sit exposed in the elements after Hurricane Harvey ripped through Rockport, Texas, on Saturday, Aug. 26, 2017. The fiercest hurricane to hit the U.S. in more than a decade spun across hundreds of miles of coastline where communities had prepared for life-threatening storm surges — walls of water rushing inland.
![Officials at the State of Texas ...]()
Ralph Barrera, Associated Press
Officials at the State of Texas Emergency Command Center at Department of Public Safety headquarters in Austin, Texas monitor Hurricane Harvey Saturday morning, Aug. 26, 2017.
![Gov. Greg Abbott receives a briefing ...]()
Ralph Barrera, Associated Press
Gov. Greg Abbott receives a briefing at the State of Texas Emergency Command Center at Department of Public Safety headquarters in Austin, Texas as they monitor Hurricane Harvey Saturday morning, Aug. 26, 2017.
![Miguel Debernardis cleans up debris in ...]()
David J. Phillip, The Associated Press
Miguel Debernardis cleans up debris in the aftermath of Hurricane Harvey Saturday, Aug. 26, 2017, in Katy, Texas. Harvey rolled over the Texas Gulf Coast on Saturday, smashing homes and businesses and lashing the shore with wind and rain so intense that drivers were forced off the road because they could not see in front of them.
![The Bayfront Seafood restaurant is surrounded ...]()
David J. Phillip, The Associated Press
The Bayfront Seafood restaurant is surrounded by floodwaters in the aftermath of Hurricane Harvey Saturday, Aug. 26, 2017, in Palacios, Texas.
![A dog walks out into flood ...]()
Stuart Villanuevam, The Galveston County Daily News via AP
A dog walks out into flood waters in Bacliff, Texas on Saturday, Aug. 26, 2017. The fiercest hurricane to hit the U.S. in more than a decade came ashore late Friday about 30 miles northeast of Corpus Christi as a mammoth Category 4 storm with 130 mph (209 kph) winds. It weakened overnight to Category 1 and then to a tropical storm.
![Crews remove derby from the streets ...]()
Gabe Hernandez, Corpus Christi Caller-Times via A
Crews remove derby from the streets after Hurricane Harvey landed in the Coast Bend area on Saturday, Aug. 26, 2017, in Port Aransas, Texas. The National Hurricane Center has downgraded Harvey from a Category 1 hurricane to a tropical storm. Harvey came ashore Friday along the Texas Gulf Coast as a Category 4 storm with 130 mph winds, the most powerful hurricane to hit the U.S. in more than a decade.
![A truck is flipped over after ...]()
Gabe Hernandez, Corpus Christi Caller-Times via AP
A truck is flipped over after Hurricane Harvey landed in the Coast Bend area on Saturday, Aug. 26, 2017, in Port Aransas, Texas. The National Hurricane Center has downgraded Harvey from a Category 1 hurricane to a tropical storm. Harvey came ashore Friday along the Texas Gulf Coast as a Category 4 storm with 130 mph winds, the most powerful hurricane to hit the U.S. in more than a decade.
![A lies abandoned after heavy damage ...]()
Mark Ralston, AFP/Getty Images
A lies abandoned after heavy damage when Hurricane Harvey hit Rockport, Texas on Aug. 26, 2017. Hurricane Harvey slammed into the Texas coast late Friday, unleashing torrents of rain and packing powerful winds, the first major storm to hit the US mainland in 12 years.
![A man in a wheel chair, ...]()
LM Otero, The Associated Press
A man in a wheel chair, who did not wish to be identified, leaves evacuation shelter from hurricane Harvey in San Antonio Saturday, Aug. 26, 2017. The fiercest hurricane to hit the U.S. in more than a decade spun across hundreds of miles of coastline where communities had prepared for life-threatening storm surges — walls of water rushing inland.
![A boat is located on land ...]()
Gabe Hernandez, Corpus Christi Caller-Times via AP
A boat is located on land after Hurricane Harvey landed in the Coast Bend area on Saturday, Aug. 26, 2017, in Port Aransas, Texas. The National Hurricane Center has downgraded Harvey from a Category 1 hurricane to a tropical storm. Harvey came ashore Friday along the Texas Gulf Coast as a Category 4 storm with 130 mph winds, the most powerful hurricane to hit the U.S. in more than a decade.
![A Rockport firefighter goes door to ...]()
Joe Raedle, Getty Images
A Rockport firefighter goes door to door on a search and rescue mission as he looks for people that may need help after Hurricane Harvey passed through on Aug. 26, 2017 in Rockport, Texas. Harvey made landfall shortly after 11 p.m. Friday, just north of Port Aransas as a Category 4 storm and is being reported as the strongest hurricane to hit the United States since Wilma in 2005. Forecasts call for as much as 30 inches of rain to fall in the next few days.
![Henry Isaac cuts down broken tree ...]()
David J. Phillip, The Associated Press
Henry Isaac cuts down broken tree limbs after Hurricane Harvey Saturday, Aug. 26, 2017, in Missouri City, Texas. Harvey rolled over the Texas Gulf Coast on Saturday, smashing homes and businesses and lashing the shore with wind and rain so intense that drivers were forced off the road because they could not see in front of them.
![Jessica Campbell hugs Jonathan Fitzgerald (L-R) ...]()
Joe Raedle, Getty Images
Jessica Campbell hugs Jonathan Fitzgerald (L-R) after riding out Hurricane Harvey in an apartment on Aug. 26, 2017 in Rockport, Texas. Jessica said is became very scary once Hurricane Harvey hit their town. Harvey made landfall shortly after 11 p.m. Friday, just north of Port Aransas as a Category 4 storm and is being reported as the strongest hurricane to hit the United States since Wilma in 2005. Forecasts call for as much as 30 inches of rain to fall by next Wednesday.
![Valerie Brown walks through a flooded ...]()
Joe Raedle, Getty Images
Valerie Brown walks through a flooded area after leaving the apartment that she road out Hurricane Harvey in on Aug. 26, 2017 in Rockport, Texas. Harvey made landfall shortly after 11 p.m. Friday, just north of Port Aransas as a Category 4 storm and is being reported as the strongest hurricane to hit the United States since Wilma in 2005. Forecasts call for as much as 30 inches of rain to fall in the next few days.
![A drives moves through flood waters ...]()
Eric Gay, The Associated Press
A drives moves through flood waters left behind by Hurricane Harvey, Saturday, Aug. 26, 2017, in Aransas Pass, Texas. Harvey rolled over the Texas Gulf Coast on Saturday, smashing homes and businesses and lashing the shore with wind and rain so intense that drivers were forced off the road because they could not see in front of them.
![A traffic signal topped by the ...]()
Eric Gay, The Associated Press
A traffic signal topped by the winds of Hurricane Harvey lies in an intersection of downtown Corpus Christi, Texas, Saturday, Aug. 26, 2017. Harvey has been further downgraded to a Category 1 hurricane as it churns slowly inland from the Texas Gulf Coast, already depositing more than 9 inches of rain in South Texas.
![As a preventative measure, empty Metro ...]()
Mark Mulligan, Houston Chronicle via AP
As a preventative measure, empty Metro buses are lined up in the center lanes of Interstate 59 near Cavalcade in case their bus shelters flood, Saturday, Aug. 26, 2017, in Houston.
![In this NASA handout image, Hurricane ...]()
Jack Fischer, NASA via Getty Images
In this NASA handout image, Hurricane Harvey from the cupola module aboard the International Space Station as it intensified on its way toward the Texas coast on Aug. 25, 2017. The Expedition 52 crew on the station has been tracking this storm for the past two days and capturing Earth observation photographs and videos from their vantage point in low Earth orbit.Now at category 4 strength, Harvey's maximum sustained winds had increased to 130 miles per hour.
![Donna Raney makes her way out ...]()
Joe Raedle, Getty Images
Donna Raney makes her way out of the wreckage of her home as Daisy Graham tells her she will help her out of the window after Hurricane Harvey destroyed the apartment on Aug. 26, 2017 in Rockport, Texas. Donna was hiding in the shower after the roof blew off and the walls of her home caved in by the winds of Hurricane Harvey. Harvey made landfall shortly after 11 p.m. Friday, just north of Port Aransas as a Category 4 storm and is being reported as the strongest hurricane to hit the United States since Wilma in 2005. Forecasts call for as much as 30 inches of rain to fall by next Wednesday.
![Lee Guerrero tries to kick open ...]()
Joe Raedle, Getty Images
Lee Guerrero tries to kick open a door of an apartment after hearing his friends say they were hiding in the shower stall and were okay after Hurricane Harvey destroyed the apartment on Aug. 26, 2017 in Rockport, Texas. Harvey made landfall shortly after 11 p.m. Friday, just north of Port Aransas as a Category 4 storm and is being reported as the strongest hurricane to hit the United States since Wilma in 2005. Forecasts call for as much as 30 inches of rain to fall in the next few days.
![Daisy Graham reacts to the news ...]()
Joe Raedle, Getty Images
Daisy Graham reacts to the news that a friend of hers may still be in an apartment that was destroyed by Hurricane Harvey on Aug. 26, 2017 in Rockport, Texas. The friends were found alive but still hiding in the shower stall after the homes roof was blown off and walls blown in by the high winds. Harvey made landfall shortly after 11 p.m. Friday, just north of Port Aransas as a Category 4 storm and is being reported as the strongest hurricane to hit the United States since Wilma in 2005. Forecasts call for as much as 30 inches of rain to fall by next Wednesday.
![Terry Smith stands with Barry Skipper ...]()
Joe Raedle, Getty Images
Terry Smith stands with Barry Skipper (L-R) as the last winds of Hurricane Harvey pass through on Aug. 26, 2017 in Rockport, Texas. Ms. Smith said she has never been as terrified in her life as when the winds started roaring through town and causing the collapse of her kitchen ceiling. Harvey made landfall shortly after 11 p.m. Friday, just north of Port Aransas as a Category 4 storm and is being reported as the strongest hurricane to hit the United States since Wilma in 2005. Forecasts call for as much as 30 inches of rain to fall in the next few days.
![A trailer overturned in the wake ...]()
Eric Gay, The Associated Press
A trailer overturned in the wake of Hurricane Harvey lies upside down, Saturday, Aug. 26, 2017, in Aransas Pass, Texas. Harvey rolled over the Texas Gulf Coast on Saturday, smashing homes and businesses and lashing the shore with wind and rain so intense that drivers were forced off the road because they could not see in front of them.
![Billy Raney and Donna Raney climb ...]()
Joe Raedle, Getty Images
Billy Raney and Donna Raney climb over the wreckage of whats left of their apartment after Hurricane Harvey destroyed it on Aug. 26, 2017 in Rockport, Texas. Donna and Billy were hiding in the shower after the roof blew off and the walls of her home caved in by the winds of Hurricane Harvey. Harvey made landfall shortly after 11 p.m. Friday, just north of Port Aransas as a Category 4 storm and is being reported as the strongest hurricane to hit the United States since Wilma in 2005. Forecasts call for as much as 30 inches of rain to fall by next Wednesday.
![A damaged home is seen after ...]()
Joe Raedle, Getty Images
A damaged home is seen after Hurricane Harvey passed through on Aug. 26, 2017 in Rockport, Texas. Harvey made landfall shortly after 11 p.m. Friday, just north of Port Aransas as a Category 4 storm and is being reported as the strongest hurricane to hit the United States since Wilma in 2005. Forecasts call for as much as 30 inches of rain to fall in the next few days.
![A family evacuates their Meyerland home ...]()
Mark Mulligan/Houston Chronicle via AP
A family evacuates their Meyerland home in Houston, Sunday, Aug. 27, 2017. Rescuers answered hundreds of calls for help Sunday as floodwaters from the remnants of Hurricane Harvey rose high enough to begin filling second-story homes, and authorities urged stranded families to seek refuge on their rooftops.
![Terry Smith stands in the kitchen ...]()
Joe Raedle, Getty Images
Terry Smith stands in the kitchen as Henry McKay sleeps in the apartment where the ceiling collapse when Hurricane Harvey hit on Aug. 26, 2017 in Rockport, Texas. Ms. Smith said she has never been as terrified in her life as when the winds started roaring through town. Harvey made landfall shortly after 11 p.m. Friday, just north of Port Aransas as a Category 4 storm and is being reported as the strongest hurricane to hit the United States since Wilma in 2005. Forecasts call for as much as 30 inches of rain to fall in the next few days.
![Moses Juarez, left, and Anselmo Padilla ...]()
David J. Phillip, The Associated Press
Moses Juarez, left, and Anselmo Padilla wade through floodwaters from Tropical Storm Harvey on Sunday, Aug. 27, 2017, in Houston, Texas.
![Jack Rigby, 17, lays on a ...]()
Jabin Botsford, The Washington Post
Jack Rigby, 17, lays on a mattress as he along with his family and friends prepare to ride out the storm at the Green Iguana Grill as Hurricane Harvey intensifies in Port Lavaca, Texas, on Friday.
![Justin Karl and Stockton Quirey board ...]()
Jabin Botsford, The Washington Post
Justin Karl and Stockton Quirey board up a window as they prepare to ride out the storm with family and friends at the Green Iguana Grill in Port Lavaca, Texas, as Hurricane Harvey intensifies in the Gulf of Mexico on Friday.
![Robert Cavanaugh buys plywood at The ...]()
Courtney Sacco, Corpus Christi Caller-Times via AP
Robert Cavanaugh buys plywood at The Home Depot to board up his windows ahead of a tropical storm on Wednesday, Aug. 23, 2017, in Corpus Christi, Texas. Texas Gov. Greg Abbott has ordered the State Operations Center to elevate its readiness level and is making state resources available for preparation and possible rescue and recovery actions amid forecasts a tropical storm will make landfall along the Texas Gulf Coast.
![Anthony Rayford and Alma Longbotham fill ...]()
Courtney Sacco, Corpus Christi Caller-Times via AP
Anthony Rayford and Alma Longbotham fill a sandbag behind the Seaman's Memorial Tower in Aransas Pass, Texas, ahead of a tropical storm on Wednesday, Aug. 23, 2017. Texas Gov. Greg Abbott has ordered the State Operations Center to elevate its readiness level and is making state resources available for preparation and possible rescue and recovery actions amid forecasts a tropical storm will make landfall along the Texas Gulf Coast.
![Residents load sandbags behind the Seaman's ...]()
Courtney Sacco, Corpus Christi Caller-Times via AP
Residents load sandbags behind the Seaman's Memorial Tower in Aransas Pass, Texas, ahead of a tropical storm on Wednesday, Aug. 23, 2017. Texas Gov. Greg Abbott has ordered the State Operations Center to elevate its readiness level and is making state resources available for preparation and possible rescue and recovery actions amid forecasts a tropical storm will make landfall along the Texas Gulf Coast.
![Texas Department of Transportation signage warns ...]()
Jason Hoekema, The Brownsville Herald via AP
Texas Department of Transportation signage warns drivers to the development of a tropical system on Wednesday, Aug. 23, 2017, in Port Isabel, Texas. Texas Gov. Greg Abbott has ordered the State Operations Center to elevate its readiness level and is making state resources available for preparation and possible rescue and recovery actions amid forecasts a tropical storm will make landfall along the Texas Gulf Coast.
![Leo Sermiento, left, and Emilio Gutierrez, ...]()
Jason Hoekema, The Brownsville Herald via AP
Leo Sermiento, left, and Emilio Gutierrez, right, fill sandbags in preparation for a tropical system on Wednesday, Aug. 23, 2017, on South Padre Island, Texas. Texas Gov. Greg Abbott has ordered the State Operations Center to elevate its readiness level and is making state resources available for preparation and possible rescue and recovery actions amid forecasts a tropical storm will make landfall along the Texas Gulf Coast.
![Michael Lambert, the emergency operations center ...]()
Stuart Villanueva, The Galveston County Daily News via AP
Michael Lambert, the emergency operations center controller at the Galveston County Office of Emergency Management, looks at a bank of monitors in center in Dickinson, Texas, Thursday, Aug. 24, 2017.
![Two residents make sand bags at ...]()
Courtney Sacco, Corpus Christi Caller-Times via AP
Two residents make sand bags at the end of East Avenue G in Port Aransas, Texas, ahead of Hurricane Harvey on Thursday, Aug. 24, 2017.
![A sign is displayed at JB's ...]()
Gabe Hernandez, Corpus Christi Caller-Times via AP
A sign is displayed at JB's German Bakery & Cafe as Hurricane Harvey approaches the area on Thursday, Aug. 24, 2017, in Corpus Christi, Texas.
![A man stands in font of ...]()
Courtney Sacco, Corpus Christi Caller-Times via AP
A man stands in font of empty shelves where generators are kept at The Home Depot ahead of a tropical storm on Wednesday, Aug. 23, 2017, in Corpus Christi, Texas. Texas Gov. Greg Abbott has ordered the State Operations Center to elevate its readiness level and is making state resources available for preparation and possible rescue and recovery actions amid forecasts a tropical storm will make landfall along the Texas Gulf Coast.
![A map of the Texas Coast ...]()
Stuart Villanueva, The Galveston County Daily News via AP
A map of the Texas Coast is projected on a screen as Deb Nowinski, a disability integration coordinator, gives information to a caller regarding the approach of Hurricane Harvey at the Galveston County Office of Emergency Management Emergency Operations Center in Dickinson, Texas, Thursday, Aug. 24, 2017.
![James Redford carries a sheet of ...]()
Eric Gay, The Associated Press
James Redford carries a sheet of plywood as he helps board up windows in preparation for Hurricane Harvey, Thursday, Aug. 24, 2017, in Corpus Christi, Texas. Two counties have ordered mandatory evacuations as Hurricane Harvey gathers strength as it drifts toward the Texas Gulf Coast.
![Residents fill sand bags as they ...]()
Eric Gay, The Associated Press
Residents fill sand bags as they prepare for Hurricane Harvey, Thursday, Aug. 24, 2017, in Corpus Christi, Texas. Two counties have ordered mandatory evacuations as Hurricane Harvey gathers strength as it drifts toward the Texas Gulf Coast. (AP Photo/Eric Gay)
![Stripes store workers board up windows ...]()
Eric Gay, The Associated Press
Stripes store workers board up windows in preparation for Hurricane Harvey, Thursday, Aug. 24, 2017, in Corpus Christi, Texas. Two counties have ordered mandatory evacuations as Hurricane Harvey gathers strength as it drifts toward the Texas Gulf Coast.
![Stripes workers board up windows in ...]()
Eric Gay, The Associated Press
Stripes workers board up windows in preparation for Hurricane Harvey, Thursday, Aug. 24, 2017, in Corpus Christi, Texas.
![Palmer Simpson loads suitcases into his ...]()
Courtney Sacco, Corpus Christi Caller-Times via AP
Palmer Simpson loads suitcases into his truck as he prepares to evacuate his home in Port Aransas, Texas, ahead of Hurricane Harvey on Thursday, Aug. 24, 2017.
![Aaron Berg fills up a gas ...]()
David J. Phillip, The Associated Press
Aaron Berg fills up a gas can and his portable generator Thursday, Aug. 24, 2017, in Houston as Hurricane Harvey intensifies in the Gulf of Mexico. Harvey is forecast to be a major hurricane when it makes landfall along the middle Texas coastline.
![Whataburger by the Bay in Corpus ...]()
(Rachel Denny Clow, Corpus Christi Caller-Times via AP
Whataburger by the Bay in Corpus Christi, Texas, is boarded up on Thursday, Aug. 24, 2017, in preparation for Hurricane Harvey.
![Mauro Eligio, left, gets help boarding ...]()
Rachel Denny Clow, Corpus Christi Caller-Times via AP
Mauro Eligio, left, gets help boarding up his home from his neighbor Chris Baker on the Southside of Corpus Christi, Texas on Thursday, Aug. 24, 2017, in advance of Hurricane Harvey.
![A lone car crosses the Queen ...]()
Jason Hoekema, The Brownsville Herald via AP
A lone car crosses the Queen Isabella Memorial Causeway in the distance as rain from Hurricane Harvey falls on Thursday, Aug. 24, 2017, in Port Isabel, Texas. The causeway will be closed to traffic by the Texas Department of Public Safety when conditions worsen, keeping individuals on South Padre Island in place while the storm passes near the deep South Texas coastal town.
![Chris Mathew fills his vehicle and five gas cans at...]()
Chris Mathew fills his vehicle and five gas cans at Costco in preparation for tropical weather on Wednesday, Aug. 23, 2017, in Pearland, Texas. The U.S. National Hurricane Center said the tropical depression was expected to intensify over the warm waters of the Gulf of Mexico before reaching the Texas coast Friday. (Steve Gonzales/Houston Chronicle via AP)
![Steve Elliott, left, and David Prater, ...]()
Melissa Phillip, Houston Chronicle via AP
Steve Elliott, left, and David Prater, right, secure a 40-foot shrimp boat at West End Marina, Thursday, Aug. 24, 2017, in Galveston, Texas, as people prepare for Hurricane Harvey.
![Shoppers pass empty shelves along the ...]()
David J. Phillip, The Associated Press
Shoppers pass empty shelves along the bottled water aisle in a Houston grocery store as Hurricane Harvey intensifies in the Gulf of Mexico, Thursday, Aug. 24, 2017. Harvey is forecast to be a major hurricane when it makes landfall along the middle Texas coastline.
![Lynn Dixon places sandbags outside their ...]()
David J. Phillip, The Associated Press
Lynn Dixon places sandbags outside their home decor store in Galveston, Texas as Hurricane Harvey intensifies in the Gulf of Mexico Friday, Aug. 25, 2017. Conditions were deteriorating along Texas's Gulf Coast on Friday as Hurricane Harvey strengthened and slowly moved toward the state, with forecasters warning that evacuations and preparations "should be rushed to completion."
![Carolyn Price empties a fridge on ...]()
Godofredo A. Vasquez, Houston Chronicle via AP
Carolyn Price empties a fridge on the lower level of her property in Matagorda, Texas before Hurricane Harvey makes landfall Friday, Aug. 25, 2017. Conditions were deteriorating along Texas's Gulf Coast on Friday as Hurricane Harvey strengthened and slowly moved toward the state, with forecasters warning that evacuations and preparations "should be rushed to completion." Price and her husband David drove down from Lake Conroe to retrieve their power fishing boat and other belongings after hearing the surge would reach 10-12 feet.
![Michael Brennan, branch chief of the ...]()
Lynne Sladky, The Associated Press
Michael Brennan, branch chief of the National Hurricane Center, talks about potential storm surge once Hurricane Harvey makes its projected landfall on the Texas coast, Friday, Aug. 25, 2017, in Miami. The National Hurricane Center warns that conditions are deteriorating as Hurricane Harvey strengthens and slowly moves toward the Texas coast.
![Michael Brennan, branch chief at the ...]()
Lynne Sladky, The Associated Press
Michael Brennan, branch chief at the National Hurricane Center, gives an update on Hurricane Harvey as it moves toward the Texas coast, Friday, Aug. 25, 2017, in Miami. The National Hurricane Center warns that conditions are deteriorating as Hurricane Harvey strengthens and slowly moves toward the Texas coast.
![A man checks on a boat ...]()
Eric Gay, The Associated Press
A man checks on a boat in the marina in preparation of Hurricane Harvey, Friday, Aug. 25, 2017, in Corpus Christi, Texas. The National Hurricane Center warns that conditions are deteriorating as Hurricane Harvey strengthens and slowly moves toward the Texas coast.
![Clouds and rain form over downtown ...]()
Eric Gay, The Associated Press
Clouds and rain form over downtown Corpus Christi, Texas, as the outer bands of Hurricane Harvey move closer to shore, Friday, Aug. 25, 2017. The National Hurricane Center warns that conditions are deteriorating as Hurricane Harvey strengthens and slowly moves toward the Texas coast.
![City workers pull down a canvas ...]()
Eric Gay, The Associated Press
City workers pull down a canvas covering as the outer bands of Hurricane Harvey move closer, Friday, Aug. 25, 2017, in Corpus Christi, Texas. The National Hurricane Center warns that conditions are deteriorating as Hurricane Harvey strengthens and slowly moves toward the Texas coast.
![A man carries a sandbag he ...]()
Eric Gay, The Associated Press
A man carries a sandbag he filled along the sea wall in preparation of Hurricane Harvey, Friday, Aug. 25, 2017, in Corpus Christi, Texas. The National Hurricane Center warns that conditions are deteriorating as Hurricane Harvey strengthens and slowly moves toward the Texas coast.
![Monica Chavez walks along a pier ...]()
Eric Gay, The Associated Press
Monica Chavez walks along a pier as rain and winds from Hurricane Harvey move closer to shore, Friday, Aug. 25, 2017, in Corpus Christi, Texas. The National Hurricane Center warns that conditions are deteriorating as Hurricane Harvey strengthens and slowly moves toward the Texas coast.
![Leo Martinez carries a sandbag he ...]()
Eric Gay, The Associated Press
Leo Martinez carries a sandbag he filled along the sea wall, in preparation for Hurricane Harvey, Friday, Aug. 25, 2017, in Corpus Christi, Texas. The National Hurricane Center warns that conditions are deteriorating as Hurricane Harvey strengthens and slowly moves toward the Texas coast..
![Tom Corbin, right, and Terry Corbin ...]()
Gabe Hernandez, Corpus Christi Caller-Times via AP
Tom Corbin, right, and Terry Corbin prepare sandbags as Hurricane Harvey approaches the Coastal Bend area on Friday, Aug. 25, 2017, in Corpus Christi, Texas. The National Hurricane Center warns that conditions are deteriorating as Hurricane Harvey strengthens and slowly moves toward the Texas coast.
![Oscar Aldana, left, and Abraham Blanco ...]()
Gabe Hernandez, Corpus Christi Caller-Times via AP
Oscar Aldana, left, and Abraham Blanco prepare sandbags to take home as Hurricane Harvey approaches the Coastal Bend area on Friday, Aug. 25, 2017, in Corpus Christi, Texas. The National Hurricane Center warns that conditions are deteriorating as Hurricane Harvey strengthens and slowly moves toward the Texas coast.
![Vimal Patel boards up windows with ...]()
Gabe Hernandez, Corpus Christi Caller-Times via AP
Vimal Patel boards up windows with the help of Carl Bledsoe (left) at the Catalina Motel as Hurricane Harvey approaches the Coastal Bend area on Friday, Aug. 25, 2017, in Corpus Christi, Texas. The National Hurricane Center warns that conditions are deteriorating as Hurricane Harvey strengthens and slowly moves toward the Texas coast.
![Luis Perez watches waves crash again ...]()
David J. Phillip, The Associated Press
Luis Perez watches waves crash again a jetty in Galveston, Texas as Hurricane Harvey intensifies in the Gulf of Mexico Friday, Aug. 25, 2017. Harvey is forecast to be a major hurricane when it makes landfall along the middle Texas coastline.
![Officials deliver water to an holding ...]()
Eric Gay, The Associated Press
Officials deliver water to an holding area for residents waiting to be evacuated, Friday, Aug. 25, 2017, in Corpus Christi, Texas. Harvey intensified into a hurricane Thursday and steered for the Texas coast with the potential for up to 3 feet of rain, 125 mph winds and 12-foot storm surges in what could be the fiercest hurricane to hit the United States in almost a dozen years.
![Water rises at Bob Hall Pier ...]()
Courtney Sacco, Corpus Christi Caller-Times via AP
Water rises at Bob Hall Pier in Corpus Christi, Texas as Hurricane Harvey approaches on Friday, Aug. 25, 2017. The slow-moving hurricane could be the fiercest such storm to hit the United States in almost a dozen years. Forecasters labeled Harvey a "life-threatening storm" that posed a "grave risk" as millions of people braced for a prolonged battering.
![Waves crash against the coast as Hurricane Harvey intensifies in the Gulf of Mexico in Port Lavaca, Texas, on Friday.]()
Jabin Botsford, The Washington Post
Waves crash against the coast as Hurricane Harvey intensifies in the Gulf of Mexico in Port Lavaca, Texas, on Friday.
![A power generator tips in front ...]()
Courtney Sacco, Corpus Christi Caller-Times via AP
A power generator tips in front of Texas' CHRISTUS Spohn Hospital in Corpus Christi, Texas, as Hurricane Harvey hits Friday, Aug. 25, 2017.
![Fishermen walk along a pier as ...]()
Eric Gay, The Associated Press
Fishermen walk along a pier as the early bands of Hurricane Harvey make landfall, Friday, Aug. 25, 2017, in Corpus Christi, Texas. Harvey intensified into a hurricane Thursday and steered for the Texas coast with the potential for up to 3 feet of rain, 125 mph winds and 12-foot storm surges in what could be the fiercest hurricane to hit the United States in almost a dozen years.
![Victoria County Sheriff's deputies bring supplies ...]()
Nicolas Galindo/The Victoria Advocate via AP
Victoria County Sheriff's deputies bring supplies into the The Victoria Tax Office in downtown Victoria, Texas, in order to prepare for Hurricane Harvey making landfall on Friday, Aug. 25, 2017.
![A street sits empty as Hurricane ...]()
Nick Wagner/Austin American-Statesman via AP
A street sits empty as Hurricane Harvey makes landfall in Corpus Christi, Texas, on Friday, Aug. 25, 2017. Hurricane Harvey smashed into Texas late Friday, lashing a wide swath of the Gulf Coast with strong winds and torrential rain from the fiercest hurricane to hit the U.S. in more than a decade.
![Shoes tied to a power line ...]()
Nick Wagner/Austin American-Statesman via AP
Shoes tied to a power line hang near a street after winds from Hurricane Harvey brought down a power pole in Corpus Christi, Texas, on Friday, Aug. 25, 2017. Hurricane Harvey smashed into Texas late Friday, lashing a wide swath of the Gulf Coast with strong winds and torrential rain from the fiercest hurricane to hit the U.S. in more than a decade.
![A damaged stop light blocks a ...]()
Nick Wagner/Austin American-Statesman via AP
A damaged stop light blocks a street as Hurricane Harvey makes landfall in Corpus Christi, Texas, on Friday, Aug. 25, 2017. Hurricane Harvey smashed into Texas late Friday, lashing a wide swath of the Gulf Coast with strong winds and torrential rain from the fiercest hurricane to hit the U.S. in more than a decade.
![A Valero oil refinery's flare continues ...]()
Nick Wagner/Austin American-Statesman via AP
A Valero oil refinery's flare continues to burn as Hurricane Harvey makes landfall in Corpus Christi, Texas, on Friday, Aug. 25, 2017. Hurricane Harvey smashed into Texas late Friday, lashing a wide swath of the Gulf Coast with strong winds and torrential rain from the fiercest hurricane to hit the U.S. in more than a decade.
![A power pole lays in the ...]()
Nick Wagner/Austin American-Statesman via AP
A power pole lays in the middle of a street as Hurricane Harvey makes landfall in Corpus Christi, Texas, on Friday, Aug. 25, 2017. Hurricane Harvey smashed into Texas late Friday, lashing a wide swath of the Gulf Coast with strong winds and torrential rain from the fiercest hurricane to hit the U.S. in more than a decade.
![A basketball hoop lays in pieces ...]()
Nick Wagner/Austin American-Statesman via AP
A basketball hoop lays in pieces as Hurricane Harvey makes landfall in Corpus Christi, Texas, on Friday, Aug. 25, 2017. Hurricane Harvey smashed into Texas late Friday, lashing a wide swath of the Gulf Coast with strong winds and torrential rain from the fiercest hurricane to hit the U.S. in more than a decade.
![A tree blocks a street as ...]()
Nick Wagner/Austin American-Statesman via AP
A tree blocks a street as Hurricane Harvey makes landfall in Corpus Christi, Texas, on Friday, Aug. 25, 2017. Hurricane Harvey smashed into Texas late Friday, lashing a wide swath of the Gulf Coast with strong winds and torrential rain from the fiercest hurricane to hit the U.S. in more than a decade.
![An oil refinery's lights illuminate rainfall ...]()
Nick Wagner/Austin American-Statesman via AP
An oil refinery's lights illuminate rainfall as Hurricane Harvey makes landfall in Corpus Christi, Texas, on Friday, Aug. 25, 2017. Hurricane Harvey smashed into Texas late Friday, lashing a wide swath of the Gulf Coast with strong winds and torrential rain from the fiercest hurricane to hit the U.S. in more than a decade. (Nick Wagner/Austin American-Statesman via AP)
![Rain is blown past palm trees ...]()
Eric Gay, The Associated Press
Rain is blown past palm trees as Hurricane Harvey makes landfall, Friday, Aug. 25, 2017, in Corpus Christi, Texas. Harvey intensified into a hurricane Thursday and steered for the Texas coast with the potential for up to 3 feet of rain, 125 mph winds and 12-foot storm surges in what could be the fiercest hurricane to hit the United States in almost a dozen years.
“There are so many things that are left up in the air here,” said Tariq Zahir, managing member of Tyche Capital Advisors, who said the significant moves in energy prompted him to start trading at 6 p.m. EDT on Sunday when Asian markets opened and continue into Monday.
Gasoline futures for September delivery jumped in the biggest one-day dollar gain in more than three months, closing up 4.57 cents, or 2.7 percent, to $1.7123 a gallon on the New York Mercantile Exchange. Diesel futures rose 1.29 cents, or 0.8 percent, to $1.6352 a gallon.
Volatility in energy markets picked up Thursday as Harvey was upgraded to a hurricane and traders braced for impact. As the storm developed over the weekend, the uncertainty over the lasting damage added to the frenetic trading.
“I’ve gotten clients calling, [asking] what do we do?” said Mark Waggoner, president of Excel Futures. “I don’t even remember the last time it was this busy walking in the door.”
Harvey’s path cut right through the heart of U.S. oil infrastructure, with the Texas coast being home to nearly 30% of the country’s refining capacity. Exxon Mobil said Monday that a floating roof on a storage tank at its Baytown plant, the second-largest refinery in the country, was damaged during the storm. If plants sustain more significant damage and need to get new electrical equipment and other parts installed to repair damage from flooding, that could extend downtime significantly.
“The market is going to trade from data point to data point,” said Mark Benigno, co-director of energy trading at INTL FCStone. “Are more refineries going to shut in? Will they be shut in for longer? Conversely, will they come back sooner? How long will it take ships to get in and out of Houston Ship Channel?”
Even energy industry veterans who have experienced major storms were flummoxed by Harvey.
“There should be a stronger word than unprecedented,” said Tom Kloza of the Oil Price Information Service.
Mr. Kloza said wholesale gasoline prices are rising five to 10 cents a gallon throughout the Southeast and other markets that are supplied by Gulf Coast refiners. Consumers will likely end up paying higher prices at the pump as a result.
The reduced refining capacity is also expected to hit U.S. crude demand. Light, sweet crude for October delivery fell to a one-month low in its biggest one-day decline in nearly two months, closing down $1.30, or 2.7 percent, at $46.57 a barrel. Brent crude, the global oil benchmark, fell 52 cents, or 1 percent, to $51.89 a barrel.
Harvey had shut in some 19 percent of oil production in the Gulf of Mexico as of Sunday and caused producers in south Texas at the Eagle Ford shale to curtail output. However, the storm’s effect on demand is expected to be more significant.
“We lost some production, but we lost more crude refinery throughput,” said John Saucer, vice president of research and analysis at Mobius Risk Group. Analysts at Goldman Sachs said they expect the storm will increase the amount of crude oil availability in the U.S. by 1.4 million barrels a day, and the reduced fuel demand could last several months.
As the U.S. has become a larger exporter of oil and fuel, the disruptions to refiners threaten to upend energy markets in other countries as well, analysts said. Latin American countries relying on U.S. gasoline or distillates will have to find alternative sources for their fuel, while Europe could look to the Middle East for additional distillates to compensate for any fall in U.S. exports.
“There could be a real chance for even global tightness in gasoline as a result of this,” said John Kilduff, founding partner at Again Capital.
Meanwhile, traders were already starting to adjust shipments to send more gasoline to the U.S.
“We already heard that some Asian refiners are trying to send gasoline to the U.S., this is in addition to the traditional European supply,” said Ehsan Ul-Haq, a director at energy consultancy Resource Economist Ltd. “I think for a couple of weeks the U.S. will need supplies from all over the world.”
