As Harvey's rains now threaten refineries in Louisiana as well as Texas, prices at the pump may rise for another week or two. Fred Katayama reports.
Tropical Storm Harvey's heavy rains and resulting flooding now threatens refineries along the Louisiana coast after hammering Texas. Gasoline futures rising further Tuesday to $1.73 a gallon. Analysts say look for fuel prices to keep shooting higher as refining capacity remains down. Experts say prices at the pump may go up for another week or two. Bernadette Johnson is vice president of market intelligence at Drillinginfo notes 32 refineries are in the flood path. SOUNDBITE: BERNADETTE JOHNSON, VICE PRESIDENT OF MARKET INTELLIGENCE, DRILLINGINFO, (ENGLISH) SAYING: "But if any of that infrastructure is permanently damaged or damaged long term, then there's certainly a risk you could see some higher gasoline prices, higher diesel prices, some bottlenecks in that supply chain until we work those problems out." Crude prices dropping further Tuesday to the $45 a barrel level. That's below the price where it was before Harvey slammed Texas. Crude was facing a global glut issue even before the storm. Mizuho Americas futures director Bob Yawger says it could come under additional pressure in a few weeks' time. SOUNDBITE: BOB YAWGER, DIRECTOR OF FUTURES DIVISION, MIZUHO AMERICAS, (ENGLISH) SAYING: "The downside is ultimately vulnerable because you are going to pile up barrels here ultimately, and also you have turnaround season just around the corner here. People are going to stop driving pretty soon. Summer's almost over." The Interior Department reports nearly one fifth of current oil production in the Gulf of Mexico has been shut due to Harvey.