» Refinery fires could raise prices at the pump.
Gasoline prices rose for the fifth consecutive week and they could jump higher following refinery fires in Texas and California, analysts said.
The fires, at Exxon Mobil’s Baytown refinery and Phillips 66’s Carson refinery near Los Angeles at the end of last week, could further tighten gasoline supplies that typically shrink around this time of year as refiners shut down for maintenance ahead of peak summer demand. It’s unclear how long the units affected by the fires may remain out of commission.
Average gasoline prices in Houston climbed 8 cents over the last week to $2.32 cents a gallon, according to GasBuddy, which tracks prices nationwide. Houston prices have risen 32 cents a gallon over the past month. They are a penny higher than a year ago.
Nationally, prices rose 4 cents a gallon over the week to an average $2.54. The national average is up 21 cents a gallon from a month ago and essentially flat from a year ago.
Gasoline prices typically rise at this time of year as refiners begin to make the switch to more expensive summer blends and shut down refining units for maintenance. U.S. stockpiles of gasoline have declined for four consecutive weeks, shrinking a cumulative 12.2 million barrels over that period, according to the Energy Department.
“This is the time of year that energy markets are very sensitive to such unexpected outages as dozens of refineries across the country perform maintenance in a tight window ahead of
the summer driving season,” said Patrick DeHaan, head of petroleum analysis for GasBuddy. “Any major outages can lead to tight inventory ahead of specification changes and have a severe impact on gas prices.”
No one was hurt in the refinery fires, although Phillips 66 said one employee was transported to the hospital with an unrelated medical issue and released. Phillips 66 said the fire, which broke out Friday, apparently began at a pump in the crude oil processing unit, but the cause remains under investigation. The unit remains shut while the company inspects for and assesses damage. Phillips 66 said it would not speculate on how long the unit will remain out of operation and what impact that might have on gasoline prices.
Exxon Mobil said it is investigating the cause of the fire, which broke out Saturday. The company said it does not discuss the status of individual refining units, but expects to meet contractual obligations.
The recent run-up in gasoline prices has followed a rebound in crude prices, which are up about $14 a barrel from the beginning of the year. Crude climbed about 1 percent Monday to settle at $59.09 in New York.