Gasoline futures prices soared to a more than two-year high Monday after Tropical Storm Harvey caused severe flooding along parts of the Texas Gulf Coast, a major refining hub.
Several refineries in the area shut down before Harvey made landfall as a hurricane on Friday, while ports in the area were closed to all incoming and outgoing traffic. Analysts expressed concern that workers will not be able to access the facilities in the coming days because of flooding in Houston and other areas.
The U.S. Gulf Coast is home to nearly half of U.S. refining capacity.
Benchmark gasoline futures rose to a session peak of $1.7799 per gallon, the highest level since late July 2015, as the refinery outages threatened to create a short-term undersupply of the fuel. Meanwhile, U.S. crude oil prices fell, reflecting lower demand for the raw material at shuttered refineries in the coming days.
U.S. gasoline futures for September delivery were trading about 3 percent higher at $1.7157 a gallon by 10:40 a.m. ET (1440 GMT).