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Harvey drives gas prices to 2017 high

Harvey’s rains and wind gusts have subsided, but the Gulf Coast’s energy industry — and consumers at the pump — are still feeling serious effects from the historic storm.

Key energy facilities are still in recovery mode, including the country’s largest refinery and its largest fuel pipeline. As a result, the average retail price of regular-grade gasoline in the U.S. rose to $2.519 on Friday, a fresh high for 2017. The price is up almost 3 percent just over the last 24 hours and has climbed 7 percent from a week ago, according to data from the driving organization AAA.

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The good news is that there appears to be no major permanent damage to the energy infrastructure of Texas and Louisiana. But it could nevertheless take some time to get the region’s shuttered facilities, which constitute more than 20 percent of U.S. refining capacity, back running at full speed.

In a statement about Harvey’s effect at the pump, AAA spokeswoman Jeanette Casselano said prices should drop quickly “by mid to late September” as facilities come back online.

Other details to watch:

– Wholesale gasoline prices, a handy measure of how much pain refiners and their customers are feeling, eased somewhat on Friday, off about 3 percent. But they still posted a hefty 12 percent gain for the week and hit fresh 2-year highs, driven by Harvey.

– Energy markets drew some relief on Friday from the Energy Department’s decision to release 1 million barrels of oil from the Strategic Petroleum Reserve as a response to Harvey. The SPR is a government stockpile of crude set aside for emergencies. The SPR oil is headed to Phillips 66’s refinery in Lake Charles, Louisiana, which was unharmed by Harvey, Reuters reported.

– U.S. fuel demand averages about 20 million barrels a day, according to the Energy Information Administration. And Labor Day weekend, which kicks off Friday, traditionally sees the year’s highest gasoline demand as drivers take off on trips to see family, visit friends, or hit the beach.