After the Valero refinery in Texas exploded yesterday, gas prices rose again, bringing more uncertainty as the war in Iran continues.
No one was injured in Monday’s explosion at the Valero refinery in Port Arthur, about 90 miles east of Houstonsaid Mayor Charlotte Moses.
The refinery has about 770 employees and can process about 435,000 barrels of oil per day, according to Valero’s website, producing gasoline, diesel and jet fuel.
Huge plumes of smoke and flames rose from the refinery, with some residents reporting hearing a loud boom and seeing their windows shake.
The explosion comes at a time of rising gas prices fueled by uncertainty over global oil supplies due to Iran war.
Earlier today, wholesale gas prices rose 10 cents a gallon and diesel rose 16 cents a gallon due to the explosion.
Andy Lipow, president of consulting firm Lipow Oil Associates, said the incident was nothing more than an ‘industrial accident’, which is still under investigation.
It comes a day after Trump delayed a deadline for Iran to open the strategic Strait of Hormuz to shipping or face its power stations targeted by airstrikes, briefly lowering oil prices and raising INVENTORY.
Oil prices eased and financial markets pulled back from their tailwinds Trump said the US would halt attacks against Iran’s power and energy infrastructure for five days amid talks to end the conflict.
Brent crude fell as much as 10% after the post on Mr Trump’s Truth Social platform, to settle at around US$101 a barrel by late afternoon.
There are still fears that uncertainty in the market due to the war in Iran could see prices rise in the coming weeks.
It’s not just the US that is seeing gas prices rise from the conflict. In the UK, prices rose 20% last week after Trump threatened to blow up the world’s largest oil field.
A term of gas is trading at around 171p, which is up over 20% compared to last month.
Rising prices are threatening UK households and energy bills WINE if the conflict is not resolved.
The Strait of Hormuz, which carries 20% of the world’s oil supply, is effectively closed to most shipping after ships were targeted by Iran, adding to global economic uncertainty.
Experts have warned that the conflict is now escalating into a serious supply crisis.
Kathleen Brooks, research director at market analysts XTB, said: “This war does not appear to be over and the energy crisis is moving from a transport crisis to a supply crisis.
“If Iran targets energy assets in the region, then the conflict becomes more serious and the consequences for a long-term energy. PRICE the shock also began to appear in the financial markets.’
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