Article authors:
Reuters
Laura Sanicola and Erwin Seba
New York / Houston — Busy Atlantic hurricane season and tight fuel supply put more strain on US refiners already with the lowest oil processing capacity There is a possibility. Analysts have warned for eight years that adding this would increase gasoline and diesel prices.
In recent years, hurricanes have temporarily lost processing capacity along the US Gulf, which accounts for 47% of US automotive fuel production. When the pandemic drastically reduced fuel demand, US refiners closed five facilities and another plant was damaged by a catastrophic storm.
These closures have reduced US fuel inventories, and demand is now skyrocketing again. Gasoline inventories have fallen by 8% for the seventh consecutive year, with more than normal storms expected.
"We are heading for the hurricane season in the toughest refining market we have ever entered," said Loregionston, founder of the Commodity Contextual Newsletter. ..
This week, a storm broke out in the Gulf of Mexico, USA, with two weather obstacles heading for the Caribbean Sea. Last year, Hurricane Ida reduced its refining capacity by more than 3 million barrels per day and closed a large Louisiana refinery.
In the aftermath of Aida, gasoline prices rose between 5 and 10 cents per gallon in parts of the southern and eastern United States. According to the American Automobile Association, current US fuel prices have fallen from early June records this year, but remain above $ 5 per gallon in the fifth state of the United States.
Gasoline inventories are about 221 million barrels, hundreds of thousands of barrels below the five-year seasonal average, and refiners are approaching peak capacity. ..
"We are hitting the door to 95% refinery utilization, which shows really strong demand, but will be much higher when an explosion or outage occurs." Robert Yoger, director of energy futures at Mizuho, said.
According to sources familiar with the preparation, Gulf refiners are not extraordinarily preparing for this year's stormy season.
To withstand floods, many have already hardened plants and turned on generators. Staff prepare for floods the day before stormy weather by lifting electrical equipment, loading sandbags, and fixing loose equipment.
However, Phillips 66, who built a flood wall to protect the Louisiana Alliance facility, was forced to close the facility after the devastating flood damage.
(reported by Laura Sanicola, edited by David Gregorio)
