According to the U.S. Department of Energy, between 20 and 30 percent of the nation’s oil refining capacity was shut down at the peak last week, and it is estimated that about 50 percent of petrochemical production was similarly shut down. Some oil production has also been disrupted. These developments have put upward pressure on gasoline prices.
At the same time, the contribution of domestic demand to growth became increasingly important, supported by fiscal policy (see Figure 11) and sticky wage developments.