U.S. Refiners Brace for Double Whammy of Heatwaves and Hurricanes Amid Peak Travel Season

Record heat and an active hurricane season are poised to challenge U.S. refiners in the coming weeks, potentially leading to highly volatile fuel prices during peak travel season. With government forecasts predicting more major hurricanes than usual, refineries along the Gulf Coast are preparing for disruptions in operations and potential supply shortages.

Record-breaking heat and an expected uptick in hurricanes are set to test the resilience of U.S. refiners in the coming weeks, increasing the risk of highly volatile fuel prices during the height of travel season, analysts predict.

The Atlantic hurricane season, running from June to November, poses a significant threat to U.S. refineries, particularly those along the Gulf Coast which account for half of the country's refining capacity. Government forecasters are anticipating up to seven major hurricanes this year, more than double the annual average.

For example, Citgo Petroleum Corp is reducing production at its Corpus Christi refinery due to Tropical Storm Beryl, which is expected to regain hurricane strength before hitting Texas. Such disruptions could lead to increased gasoline prices and prolonged supply shortages.

(With inputs from agencies.)