Economic prospects for all industries—including refineries—look bleak. What context is missing from these stories?
Hurricane Harvey has slowed U.S. refinery output and disrupted the fuel supply chain. But thankfully, this disruption is not expected to be permanent.
Fuel supply restrictions resulting from hurricanes and other natural disasters, often lead to price increases as the market reacts to rebalance supply and demand. To protect consumers, many states have enacted price gouging laws that limit a merchant’s ability to raise prices during an emergency.