August 23, 2015 – Wall Street Journal
Refinery Woes Stall Gasoline Price Drops
By: Alison Sider
U.S. oil prices briefly dropped below $40 a barrel on Friday—hitting a six-year low that adds to pressure on pump prices for Labor Day road trips. But cheap gasoline isn’t a sure bet everywhere.
Even as most drivers around the country are spending 25% less on fuel than they did a year ago, California drivers have missed out on the gasoline price windfall because of refinery outages. Many drivers in the state are saving less than 10% on gasoline this summer. In Los Angeles, where a gallon of regular unleaded averages $3.71, some stations are charging nearly $5 a gallon….
Read the full story here: http://www.wsj.com/articles/refinery-woes-stall-gasoline-price-drops-1440372400
…Supplies also are getting tight along the U.S. East Coast as a large fire broke out at a Delaware City refinery on Friday and operational problems cut into fuel production at plants in New Jersey and Pennsylvania, according analysts.
After running full-tilt for more than a year, American refineries appear to be hitting their limits, said Sandy Fielden, an analyst at energy market researcher RBN Energy LLC.
“Refiners have been running plants hell-for-leather to take advantage of strong margins,” he said. “It stands to reason that if you run any sophisticated plant harder and faster than normal—you are bound to end up breaking something.”
