Refinery fire sends US petrol price soaring

The Times (UK) ^ | March 31, 2004

[sarcasm]

A blast at a BP refinery and the prospect of an output cut by Opec, the oil producers' cartel, have sent US petrol prices to an all-time high.

Benchmark petrol futures hit $1.177 a gallon this morning, passing a previous record of $1.175 set in May 2001.

Traders said the rise reflected fears that an explosion and a fire at BP's Texas refinery would further tighten a squeeze on US petrol supplies ahead of the summer months in which demand for motor fuels peaks. Further data on petrol reserves is set to be released later today by the Energy Information Administration.

The market has also been stoked by reports of increasing support among Opec members for a reduction of 1 million barrels a day in oil production outlined last month in Algiers.

Although Kuwait and the United Arab Emirates have urged a rethink of the cut, Saudi Arabia, the most influential member of Opec, has urged members to curb output over fears that crude prices will drop as the northern hemisphere enters summer and demand for heating oil plummets.

Fethi bin Chetwane, the Libyan Oil Minister, speaking before an Opec meeting which began this morning, said that member states were "mostly" in favour or lower production quotas.

On the oil markets, Brent crude gained $0.37 a barrel to $32.82 a barrel. Benchmark New York crude rose by $0.45 a barrel to $36.70 a barrel.

Although the refinery fire comes less than a week after FBI investigators warned of possible terror attacks at oil installations in the run-up to November's presidential elections, BP said there was no indication of “any outside influence” in the blast.

[AmericaUnited]

The Saudi's are putting the knives in our back. It's time to return the favor.

[tkathy]

GWB should use the rising gas price thing to campaign against those who voted against drilling in Anwar. He should say this would help us be independent from those who would manipulate our economy, thus our jobs, investments, etc...

[GailA]

That black stuff is HURTING US says Hanoi John

[jscd3]

GWB should use the rising gas price thing to campaign against those who voted against drilling in Anwar.

Although an excellant idea, it really won't help us if the problem with gasoline prices is a shortage of refinery capacity

Refinery capacity has been shrinking in the US for 20 years. This is almost entirely the fault of EPA rules and regs that make it practically impossible to build new refineries or substantially improve old ones. The result is a slow but continuous decline in capacity.

Now, every time a refinery goes off line for repair or due to accident, available capacity falls significantly and gasoline prices jump.

I don't think putting C T Whitman in charge of the EPA was a good first move by Bush. Glad she's gone now, but it was wasted time.

[Frank_Discussion]

Of course, it wasn't a refinery, it was a chemical plant. No gas production affected. (Don't tell the sheeple, though)

[Darnright]

My, my, my. Here we are, almost a year later, and there is yet another explosion at a BP refinery plant. Just as prices are beginning to rise for the annual spring rape of motorists.

What a surprise.