It’s been about a month since Hurricane Harvey caused havoc in the eastern energy sector of the United States. That will be the focus of October’s edition of the Breakthrough®Advisor.
Plus, we’ll take a closer look at other headlines that will likely have an impact on transportation costs and plans for your 2018 budget.
The Market After Harvey
The Applied Knowledge Team is putting together a special follow-up report on Hurricane Harvey’s impact. The storm caused widespread closures of refineries along the Gulf Coast leading to a spike in diesel prices.
We’ll provide an in-depth commentary on how the region is rebounding from the disaster.
Now that we’re a month removed from the storm, what was the effect on the market, what’s the situation now, and what can we expect to happen in the coming weeks and months?
Looking Ahead to Q4 and Beyond
Harvey didn’t have an extreme impact on crude oil prices. That’s because idled refineries in the Houston area led to a buildup of crude inventory. However, impacts to these refineries also led to reduced production of diesel and other refined products, causing those prices to spike. Now it appears that crude oil prices could be on the rise as we head into Q4. Find out why.
Breakthrough®Fuel’s clients have a lot of questions about budgeting for 2018, and we’re here to help. The Applied Knowledge Team will examine what disruptions such as Hurricane Harvey mean for next year. OPEC also has its eyes set on 2018 as an informal meeting in late September helped clarify the cartel’s path into next year. The October Advisor will discuss the outcomes of this meeting and the initial market reactions.
Challenging the California Diesel Tax Increase
Back in the U.S., California is moving forward with plans for a 4% increase on diesel fuel taxes and a 20-cent per gallon diesel excise tax increase. This adds up to an excise tax of 36 cents and a fuel tax of 5.75%.
The change is supposed to go into effect on November 1st. However, State Representative Travis Allen has filed an initiative to repeal the tax and fee increases that Governor Jerry Brown signed into law to fund transportation infrastructure updates.
A Superior Court Judge agreed with Allen’s assertion that language the California Attorney General used to describe the initiative to repeal the tax increase was “misleading.” What could all of this mean to you? We’ll explain in the October edition of the Breakthrough®Advisor.
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