Largest oil refinery in U.S. shuts down due to Harvey, spiking gas prices

Motiva oil refinery in Port Arthur, Texas.

(Image credit: STAN HONDA/AFP/Getty Images)

Motiva's oil refinery in Port Arthur, Texas — the largest refinery in the country — was forced to shut down operations Wednesday due to the unprecedented flooding from Tropical Storm Harvey, CNN Money reports. "It will be a while before operations can return to normal, and the U.S. refining industry is bracing itself for an extended shutdown," PVM oil analyst Stephen Brennock told CNBC.

Goldman Sachs estimates 23 percent of U.S. fuel production was offline Tuesday, and gasoline slated for September delivery climbed 5.89 cents on the New York Mercantile Exchange to $1.84 a gallon, its highest point in two years, Bloomberg reports. "Analysts predict drivers will see higher gasoline prices due to restrictions on supply," CNN Money reports.

The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE

https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Explore More

Jeva Lange was the executive editor at TheWeek.com. She formerly served as The Week's deputy editor and culture critic. She is also a contributor to Screen Slate, and her writing has appeared in The New York Daily News, The Awl, Vice, and Gothamist, among other publications. Jeva lives in New York City. Follow her on Twitter.