FIRST AIRED: August 28, 2017

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00:00:01
>> The tropical storm still battering Houston with rain hasn't just submerged America's fourth largest city, it also took out a global energy hub. Harvey knocking out one-quarter of US oil production in the Gulf of Mexico, and shuttering the port of Houston and terminals along the Texas coast. Reuters' commodities editor, Simon Webb.
00:00:19
>> The biggest impact on the energy markets on Monday has been on gasoline futures prices, they've risen to a two year high because many of the refineries on the Texas coast have been shut down. That's mostly as a precautionary measure, we haven't had any reports yet of major damage to those plants, but we're talking about 2 million barrels per day of refinery capacity that is now offline.
00:00:43
>> Energy markets are used to local disruptions, but this time it's different.>> I mean you have to remember that the energy industry is centered in Houston, so aside from the chaos that we're seeing there on the streets and across a wider region of Texas a lot of oil traders can't get to work so they're as surprised and shocked as everybody else.
00:01:04
We have no idea yet really what the extent of the damage is gonna be on the refining system, the pipelines, even some of the shale oil fields that are in Texas. So there's still a long way to go before we can really measure the full impact of this storm on the energy sector.
00:01:20
>> Among the refiners impacted by Harvey, Exxon closing down the second largest US refinery in Baytown, Texas because of flooding. Royal Dutch Shell also halted operations at its Deer Park, Texas refinery which it says may be shut for the week. And sources say flooding on highways between Houston and Texas City led Marathon to cut back gasoline production at the company's Galveston Bay refinery.