Recently, the energy team at Nasdaq Advisory Services in the US provided fuel price information. This stock market predicted that the price of gasoline and inflation could rise. The analysis is motivated by the impact of Cyclone Idalia on North American territory this Wednesday, August 30 and Labor Day. Experts assured that with the passage of the hurricane, the production of crude oil and gas in the Gulf would be limited.
The atmospheric phenomenon entered the state of Florida at Category 3, forcing the evacuation of more than one and a half million residents. Hurricane Idalia is causing damage extending to the East Coast with winds of more than 110 miles per hour and flooding. With these impacts, the distribution of hydrocarbons stops and refineries have to stop operating.
Oil production could be delayed
The concentration of evacuated people creates demand for gas. In addition, drivers must fill up their cars on Saturday or Sunday because Monday is Labor Day.
All of these circumstances together mean that the price of oil remains high. Specialists from the financial company Citigroup warned in advance that the cyclone season would have an impact on energy services.
The American Automobile Association (AAA) reported that the standard price for a gallon of regular gasoline was $3.82 last Tuesday. This figure represents a decrease compared to the previous week, but it is a high price compared to the same period in previous years.
Citigroup officials also said the movement of two Category 3 to 5 hurricanes over northern ground would have serious consequences. An event of this magnitude can delay oil production for months.