Chicago Gasoline Jumps After BP Whiting Refinery Fire

[Purveyor]

By Lynn Doan and Dan Murtaugh Aug 28, 2014 1:25 PM ET

An explosion at BP Plc (BP/)’s 405,000-barrel-a-day Whiting refinery, the largest plant in the Chicago area, almost doubled the premium for gasoline today on speculation that supplies will shrink.

Spot gasoline in the Chicago region was 12 cents a gallon above October futures on the New York Mercantile Exchange today, up from a 7.25-cent premium yesterday, according to data complied by Bloomberg at 12:43 p.m. Ultra low sulfur diesel strengthened by 2.75 cents to a 3-cent discount to Nymex futures, while jet fuel jumped 6.5 cents to a 14-cent premium.

BP had a fire at a 105,000-barrel-a-day hydrotreater late yesterday, and the extent of the damage wasn’t immediately clear, Sugar Land, Texas-based IIR Energy said today.

“I don’t know that BP is out in the market today, but people are trying to step out in front of them,” Steve Mosby, supply manager of ADMO Energy LLC, said by phone from Kansas City, Missouri. BP “says it has minimal impact, but when something goes boom, it’s not nothing.”

http://www.bloomberg.com/news/2014-08-28/chicago-gasoline-jumps-after-bp-whiting-refinery-fire.html

[louis-t]

1. Up $.30 a gallon here today.

I heard they are not even offline.

[Purveyor]

2. Ours (Jackson, MI) went up yesterday before this event, going from

3.48 TO 3.69.

I lucked out though as I was in town early plus, I have a Shell Savers card (direct debit) that knocked off .22 a gallon because Joey Lagano won the NASCAR race saturday night.

3.26 a gallon final price but I forgot to throw my darn tractor gas can in the truck. Wanted more!

Jackson, historically has one of the highest lower michigan around so I expect them to take the price right up to 3.99.