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Gas prices: What is causing the big spike?

Published: Thursday, July 11, 2019 @ 9:06 AM

A storm brewing in the Gulf of Mexico is anticipated to become a Category 1 hurricane. Due to its location, we could feel the effects of the storm in our wallets here in the Miami Valley.

It's over 1,000 miles away, but a storm brewing in the Gulf of Mexico could have an impact on your wallet here in the Miami Valley. 

The most recent forecast from the National Hurricane Center has soon to be Tropical Storm Berry reaching category 1 hurricane status in the early morning hours on Saturday.

>> Pump Patrol: Check prices in your neighborhood

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The slow moving storm will then creep into the southern coast of Louisiana bringing up to 15" or more along with it.

How does this affect Dayton? 

The U.S. energy industry has already halted a third of oil production in the Gulf of Mexico; translating to over 600,000 barrels of oil per day. 

Additionally, liquid natural gas production has been reduced by approximately 18%. 

To further reduce the overall short term supply, the U.S. Coast Guard anticipates waterway restrictions on the Mississippi River that would delay delivery of the commodities. 

This delayed and reduced production will result in an overall price increase at not only the pump, but in natural gas energy utilities as well.

The effects of this price jump should be relatively short lived. As the storm fades and water recedes, production should ramp back up, returning prices to normal levels.