Chevron Refinery Fire Disrupts California Fuel Supplies, Drives Jet Fuel Price Surge
A significant fire and explosion at Chevron's El Segundo refinery in California has disrupted fuel supplies. The incident, which occurred in a jet fuel unit, forced multiple processing units offline and led to a jump in jet fuel prices. Fortunately, no injuries were reported, and all personnel were accounted for.
The fire, which was extinguished after several hours, has raised concerns about California's refining system. The state is already facing tighter balances due to planned refinery closures in the coming months. The El Segundo refinery supplies around 20% of California's motor fuels and approximately 40% of the state's jet fuel, making it a crucial source for the USA.
Following the incident, jet fuel prices jumped by about 33 cents per gallon. While California petrol prices are expected to rise modestly, the state is likely to import more jet fuel cargoes from Asian refiners to cover the lost output from the El Segundo refinery. An investigation into the cause of the explosion and fire has been commissioned by the Los Angeles County Fire Department.
The Chevron refinery incident serves as a reminder of the importance of this facility in California's fuel supply chain. While no injuries were reported, the disruption in supply has led to price increases and will require the state to source fuel from other regions. The investigation into the cause of the incident is ongoing.
