Oil Jumps After Explosion and Massive Fire at One of the Largest U.S. Oil Refineries
Right on cue.
This article originally appeared on ZeroHedge and was republished with permission.
Guest post by Tyler Durden
An explosion and large plumes of smoke at the Valero refinery in Port Arthur prompted officials to order west-side residents to shelter in place according to 12 News Now.
A fire broke out at a diesel hydrotreater, with the unit suffering severe damage, according to people familiar with the incident. The fire was near the plant’s fluid catalytic cracker, and part of the refinery has been shut down, according to the people, who said a decision hasn’t yet been made whether to shut the entire plant.
A few minor injuries were reported, according to people familiar. A Valero spokesperson said all personnel have been accounted for. Local officials have shut two nearby state highways as a precaution, the spokesperson said.
Witnesses across the Mid-County area reported hearing a loud boom that rattled car windows. A resident near the scene told a 12News crew the area smelled of rotten eggs, an indication of sulfur in the air.
Antonio Mitchell with the Port Arthur Fire Department confirmed an incident at the Valero facility, though details remained limited. “The type of incident is unknown at this time,” Mitchell said not long after the explosion as his crews headed to the scene.
No injuries have been reported, and no evacuations have been ordered. Officials are monitoring air quality in the area.
Interim Port Arthur Fire Chief Louie Havens said two engines were initially sent to the refinery and a hazmat team is being deployed to Valero. Havens also confirmed there have been no injuries or deaths reported. Beaumont Fire Department and the Jefferson County Sheriff’s Office are assisting the Port Arthur Fire Department.
The City of Nederland issued a statement through the Southeast Texas Alerting Network saying its police and fire departments are actively patrolling and conducting air monitoring on the south side of the city.
“At this time, there is no impact to the City of Nederland,” officials said, adding that updates would be provided if conditions change.
The Texas Commission on Environmental Quality said emergency response coordinators and regional staff have been deployed with handheld and mobile air monitoring assets in response to the Valero fire in Port Arthur and are coordinating through incident command. Officials said updates will be shared as they become available.
The Texas Department of Transportation urged drivers to avoid the area, asking motorists to steer clear of SH 87 and SH 82 near the refinery.
The refinery can process 435,000 barrels of heavy sour crude a day, making it one of the top 10 largest refineries in the US.
News of the fire, coupled with fresh reports of hostilities in Iran, sent WTI crude - which earlier in the day dropped as low as $85 - back over $90 and rising.
Which in turn is weighing on equity futures, erasing much of the earlier gains.
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That's weird. The only refineries that are supposed to be blowing up are those of countries that the US doesn't like because they stand in the way of US/Israel domination of a region.
This isn't supposed to be a 2-way street; they're not allowed to hit back.
US foreign policy at its usual best.