World News
Large US Gulf Refinery Shuts Down After Explosion: Report
Production has been halted at Valero Energy's Port Arthur refinery in Texas - one of the largest in the US - following an explosion.
The shutdown of the 380,000 b/d plant was prompted by an explosion and fire in the refinery's diesel hydrotreater unit, news agency Reuters reported late on Monday, citing sources familiar with the facility's operations.
The explosion reportedly took place at about 7:30 PM local time on Monday.
The refinery is a significant source of VLSFO, as well as other marine fuel grades, for the US Gulf bunker market.
Global refined products markets are under extreme stress because of the knock-on effects of the current conflict in the Middle East, and a further loss of refining capacity in the US Gulf will add to the current long list of problems.
US Gulf bunker prices have thus far faced much less severe price spikes than other parts of the world since the strikes on Iran at the end of last month, but this incident may help them to catch up to prices elsewhere. VLSFO delivered in Houston has gained $313.50/mt since the end of February, according to Ship & Bunker prices, compared to a $464.50/mt jump in Singapore.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 986.00 | 29.50 | 1940.00 | 117.50 |
| Rotterdam | 829.50 | 18.00 | 1397.50 | 39.00 |
| Houston | 808.00 | 28.50 | 1295.00 | 20.50 |
| Fujairah | 1039.00 | 35.50 | 1792.00 | 47.50 |
| Global 20 Ports Average | 1035.50 | 17.50 | 1623.00 | 21.50 |
| Global 4 Ports Average | 915.50 | 28.00 | 1606.00 | 46.00 |
| Global Average Bunker Price | 1047.00 | 21.00 | 1549.00 | 17.00 |
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