LA refinery fire to push up gas prices

Sept. 26, 2009 at 2:10 PM   |   Comments

LOS ANGELES, D.C., Sept. 26 (UPI) -- A fire at a Los Angeles gasoline refinery will likely push pump prices up by a nickel or more per gallon in California, analysts say.

Damage from the three-hour fire Friday at the Tesoro facility in the city's Wilmington area had yet to be fully assessed, and depending on the scale of the destruction, California drivers would see retail prices rise by at least 5 cents per gallon, the Los Angeles Times reported.

"Before this fire, the price was about to drop like a rock," Tom Kloza, chief oil analyst for the Oil Price Information Service in New Jersey, told the Times. "Instead of falling sharply, the price will go back up."

Kloza said the Wilmington incident and a smaller fire at a Chevron refinery in Richmond, Calif., would team to push prices up. Another expert, Bob van der Valk, agreed that a nickel-per-gallon rise was likely, but also predicted a collapse in pump prices by the Thanksgiving holiday, saying low demand and increasing supplies would win out by then, the newspaper reported.

© 2009 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Recommended Stories
Most Popular
Who is the 'Woman in Black' roaming U.S. highways?
Oklahoma shook by three earthquakes in less than 48 hours
Army receives first advanced CH-47F helicopter variant
One cop issued 80 percent of the marijuana tickets in Seattle this year
Comic-Con cosplayer sexually assaulted, beaten and left in gutter
Trending News