Hurricane Season Drives Demand For Gas in US

Florida, the biggest gasoline market on the U.S. East Coast, is enduring a supply squeeze and higher prices just a month before the start of the hurricane season.

The state, surpassed only by California and Texas in gas consumption, has no refineries and relies on tanker and barge deliveries for 97 percent of its supply. Retail gasoline has risen to the third-highest level ever seasonally and stockpiles are about 7 percent lower than a year ago.

Florida’s fuel market underscores how the shale-oil revolution created winners and losers, with the Gulf Coast awash in cheap crude and other regions missing out because they lack transportation and refining capacity. A shortage of U.S.-flagged tankers that Florida relies on for deliveries and hurricanes after June 1 may spur higher prices.

via Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza