Five gasoline tankers that were enroute to the U.S. East Coast diverted to the Port of Houston to help ease a supply crunch after last month’s freeze crippled the region’s refineries.
Gasoline imports happen infrequently for the Gulf Coast, which typically produces more than enough fuel for the region and generates significant revenue exporting barrels to foreign customers. Texas retailers were also forced to truck in gasoline from other states last week for the first time since Hurricane Harvey.
U.S. gasoline stockpiles fell by a record 13 million barrels last week, with most of that in Gulf Coast region, according to government data. The five ships are carrying nearly 1.5 million barrels in total.
Texas remains “very low” on gasoline, said Paul Hardin, president of the Texas Food & Fuel Association trade group. “If we don’t have a public panic buy, we’ll make it through the next three or four days.”
The New York area, which is supplied with fuel by pipeline from Houston to augment its local refineries, is not yet facing Texas’ pinch. The region’s inventories increased last week. But the country’s largest fuel artery, the Colonial Pipeline, said earlier this week major lines toward New York were experiencing reduced throughput. Fewer barrels of gasoline will be available in the Northeast.
“Gasoline is definitely migrating south. There’s room in the tanks so I would expect to see greater flows” toward Houston in coming weeks, Vortexa analyst William Holeman said.