Several major refineries closed, oil price surged to a 13-month high

ExxonMobil Corp., Valero Energy Corp. and Total Petroleum Corp. have temporarily shut down some of their Texas refineries and slashed crude oil production as widespread disruption from the cold pushed oil prices to their highest levels so far this year. At least 2.6 million barrels have been confirmed completely shut down, with a total of about 5.9 million barrels of refining capacity in status.

Motiva Enterprises, North America’s largest refiner, said it would close its Port Arthur refinery in Texas due to cold weather.

Chevron Phillips Chemical reported that it was preparing to shut down facilities due to severe cold weather at its Pasadena, Texas, plant.

Enbridge said the Route 59 crude oil pipeline was shut down after a power outage.

Saudi Aramco’s Motiva Enterprises LLC will also cease operations at its Port Arthur, Texas refinery.

Marathon Oil’s Galveston Bay refinery south of Houston was also temporarily shut down because of weather problems. Some 3m b/d of capacity has been disrupted by refinery shutdowns in the US state of Texas. Oil prices surged  to their highest level in about 13 months. Brent crude rose 87 cents, or 1.39 percent, to settle at $63.30 a barrel after rising as high as $63.76 a barrel earlier in the session, its highest level since Jan. 22. U.S. crude futures rose 63 cents, or 1.1 percent, to $60.10 a barrel, after touching $60.95 a barrel earlier in the session, the highest level since Jan. 8. Raw oil prices rise on the industry chain products undoubtedly play a cost support role. On February 18, domestic commodity futures rose in a large area, with energy products showing strong performance, crude oil up more than 7%, styrene up 11% by the daily limit; Crude oil, ethylene glycol, fuel oil, plastic futures have surged, ethylene glycol main contract also reported up 8.35%.

The chemical market also ushered in a “good start” after the holiday, the price rose straight.

Industry insiders say a prolonged period of temperatures well below normal will strain coal, gas and power supplies to the limit, with the chemical sector bearing the brunt of the fallout. At the beginning of 2021, the chemical industry will sweep away the haze of 2020 and start a counter-price rise. After the year of 2021, the “energy crisis” caused by the cold wave will be added. It is expected that the price increase of chemical products in this year will become the main theme and gradually extend to the downstream, or it will cause an upward trend in many industries.

Many chemical products price like Isooctane,Cyclohexane,Dmac,Dmf etc. are soaring.

Post time: Feb-20-2021
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