Posted in: Gas Prices,
by Patrick DeHaan on Oct 27, 2009 04:37 PM
Time for a quick refinery update, since it seems that refiners are playing a key role in higher gasoline prices.
Today, BP announced that its Texas City plant was going to restart/re-open. The gasoline producing unit at the refinery had been offline since September 2 to undergo maintenance. The full capacity of the plant is nearly 470,000 barrels per day.
However, soon after BP announced the restart, Valero announced maintenance at a total of six of its facilities, with two of them completely shutting down for work while the remaining four would be partially shut. This news is sure to keep demand worries at the forefront as gasoline prices rally. Over the last month, the average for a gallon of gasoline has risen nearly 20-cents per gallon while crude has surpassed $80 for the first time in over a year.
The Department of Energy releases its weekly report tomorrow morning at 10:30am EDT, and it will be very interesting to see if refinery utilization jumped and if we had another large loss in gasoline stockpiles. Be sure to check back tomorrow for updates!