Oil market volatility spiked Monday as the aftermath of Hurricane Harvey continued to wreak havoc along the heartland of the U.S. refinery industry.
Houston and its main port were shuttered ahead of the storm, which made landfall this weekend as a category 4 storm before being downgraded to a tropical storm Sunday. Damage has knocked out refineries and some 22% of the Gulf of Mexico's crude production, according to the Financial Post.
Gasoline futures for September delivery hit a two-year high Monday, trading up over 4% premarket to $174.33 as flooding closed refineries. The same closings sent West Texas Intermediate crude oil futures for October delivery down 0.8% Monday morning as demand for U.S. crude is expected to fall.
Harvey - and the massive flooding it's brought - are moving along the Gulf of Mexico coastline Monday morning, lingering close to the shore through Tuesday and moving east toward Louisiana. Texas supplies 5.6 million bpd of crude refining capacity, while Louisiana is home to 3.3 million bpd.
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