Why hurricanes can take gasoline prices for a wild ride

UNITED STATES OF AMERICA : Investors are keeping a close eye on energy markets as Hurricane Laura moves toward the Texas-Louisiana border, the latest potential weather event that could disrupt supplies for gasoline.

Here’s what you need to know about how hurricanes and tropical storms can affect prices at the pump:

Refining and Infrastructure

Dangerous weather events on the Gulf Coast tend to drive volatility in energy markets because many US refiners that turn oil into fuel products like gasoline and diesel are located there and often have to close ahead of such storms. Nearly half the nation’s refining capacity is near the Gulf of Mexico, according to the Energy Information Administration.