Irving refinery blast not seen inflating gas prices
The explosion that rocked Irving Oil’s Saint John refinery on Monday is unlikely to affect the price of gas in Canada, according to experts.
The quick return to the facility by contractors and the fact its fuel storage tanks were likely full to ensure customers were supplied during a scheduled maintenance shutdown mean the refinery interruption should have little shortterm impact on consumers, they said. “It comes at a fairly good time for motorists as far as inventory reports in the U.S. Northeast, New England, are concerned,” said Dan McTeague, senior petroleum analyst at GasBuddy.com.
Gasoline prices in the key New York Harbour market were trending lower on Tuesday morning as storage levels in the Northeastern U.S. are 20 per cent higher than they were a year ago, said McTeague.
“I note the large number of people jumping the gun yesterday looking at the market and saying, ‘You know, this is going to mean a major spike in the price of gasoline ...,” he said. “But it’s certainly not being borne out by the early indications in the market.”
Even if the refinery’s maintenance shutdown is extended because of damage, the fact it is on the ocean means alternative supplies of fuel can easily be brought in from offshore to ensure there are no shortages and resulting price increases, said Michael Ervin, senior vice-president at the Kent Group Ltd.