Hurricane Harvey hit the US economy hard

The costs of the deadly storm in Texas and the Gulf of Mexico have continued to mount, with Texas authorities estimating it at $125bn (£97bn).

Hurricane Harvey has killed more than 30 people and destroyed thousands of homes.

While the rain has shifted away from Houston, the US’s fourth largest city, much remains underwater. The state of Texas is one of the US’s main economic engines.

Many firms in the region, a major transport hub that is a home to the oil and gas industry, don’t know when they will resume normal operations.

The storm struck at the heart of America’s oil and gas industry, knocking a third of all US production offline, closing refineries around the Gulf Coast, and causing major pipelines that move fuel to other markets to shut.

Petrol prices, which increased in anticipation of the storm, are expected to continue to rise, despite additional shipments from overseas. In Texas, shortages at stations in some areas have been reported.

Mansfield Oil Company, a wholesale gas supplier, is trying to bolster its supplies by bringing in fuel by lorry and rail – even ships, depending on the market.

Companies are trying to figure out when they can restart operations.

Colonial Pipeline said it expected to re-open its Houston line by Sunday, but other firms said they didn’t know when normal operations would resume.

“Given the unprecedented flooding in the city of Port Arthur, it remains uncertain how quickly the flood waters will recede, so we cannot provide a timeline for restart at this time,” said Motiva, which runs one of the biggest refineries. “Our priority remains the safety of our employees and community.”

Moody’s expects costs to businesses to total $10bn-$15bn, with additional infrastructure costs rising as high as $10bn.

Some damage was already evident.

Fires from organic peroxides were reported at the Crosby plant of chemical company Arkema and more were expected, after flooding overwhelmed the firm’s back-up generators and refrigerators designed to keep the materials cool.

The plant was six feet underwater, the company said.

Shutdowns of other facilities have led to releases of pollutants, while water has overwhelmed Houston’s sewers. The structural integrity of reservoirs is also being monitored, the White House said.

Source-BBC