Oil prices are going up, is the refinery shutdown to blame?

Severe weather over a large swath of the country does more than cause power outages and flight cancellations. News reports say the cold weather shut down many US oil refineries, causing crude oil prices to skyrocket.

Reuters reported, quoting sources, that LyondellBasell Industries closed a large crude distillation unit and two hydrogen processors on Friday at the 268,000-barrel-per-day Houston refinery due to the severe cold and winter storm that affected much of the United States and the Gulf Coast.

The global chemical company says Houston Refining is one of the largest refineries in the United States designed to process heavy sulfur crude oil.

Data collected by the US National Weather Service showed temperatures in Houston dropped 45 degrees on Thursday, from 63 degrees Fahrenheit to 18 degrees Fahrenheit.

The LyondellBasell Refinery in Houston, Texas, is among the largest full conversion refineries in North America capable of processing large volumes of heavy, high sulfur crude oil. (Photo: Lyondel Basil)

A brutal winter storm wiped out more than a million Americans

A spokesperson for the Houston-based refinery told Fox News on Friday, “Our locations at LyondellBasell in the US Gulf Coast continue to run detailed assessments triggered by Winter Storm Elliott, but for competitive reasons we do not provide specific details about the units, their operational status, production numbers.” or offer.”

The spokesperson continued: “Our focus remains on ensuring the health and safety of our people and the communities in which we operate. We may need to conduct some incineration to ensure safe operations.” “The flares are a safety feature designed to burn excess material caused by certain routine operations as well as certain non-routine situations, such as a loss of power or equipment failure.”

“We apologize for any inconvenience this may cause our neighbors in the community.”

LyondellBasell Industries

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tape protection the last changes changes %
LYB LYONDELLBASELL INDUSTRIES NV 83.13 +1.65 +2.03%
MPC Marathon Petroleum Company. 115.12 +3.47 +3.11%

The first squawking, quoting the sources, chirp that Marathon Petroleum shut down its Galveston Bay refinery while PiQ chirp Motiva Enterprises has discontinued its Port Arthur facility.

The Marathon Galveston Bay refinery in Texas City, Texas has a capacity of 593,000 barrels per calendar day.

The Port Arthur refinery has a capacity of 630,000 barrels per day.

With crude prices surging in the aftermath of a winter storm and rumors of refinery shutdowns, oil rose nearly 3.21% to $79.98 a barrel in the middle of the trading day shortening, while oil producers such as Hess, Chevron and Exxon Mobile are hovering well in the green after posting losses for most week days.

Christmas Travel: Severe weather causes major flight disruptions

tape protection the last changes changes %
West Texas Intermediate W & T abroad 5.74 +0.23 +4.18%
Hess Hess Corp. 141.68 +6.38 +4.72%
CVX Chevron Corporation. 177.82 +5.65 +3.28%
xom EXXON MOBIL CORP. 108.74 +2.81 +2.65%

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