Oil prices are expected to trend higher due to Tropical Storm Barry and rising tensions in the Middle East.
West Texas crude topped $60 a barrel Friday after Barry forced the shutdown of oil production along the Gulf.
“You've got refineries shutting down, disruptions in the Houston Ship Channel, as well as refinery row,” says Daniel Flynn, energy analyst with PRICE Futures Group.
Most impacted by the storm were refineries in the Lake Charles area.
“That's where Barry was right in the heart of,” says Flynn. “In the short term you're going to definitely see a price spike for the mere fact of disruptions.”
Then there's the issue with Iranian ships blocking British oil tankers.
“We're going to see some premium put into the market just for insurance for vessels going through Gulf of Oman and Strait of Hormuz”
The average price for regular in Houston was already up to $2.47 on Friday -- five cents higher than Fourth of July weekend.