The fire broke out at a refinery owned by Valero, one of the local heavyweights in the hydrocarbons market. A few months ago, the company signed an agreement with Chevron regarding the processing of Venezuelan crude oil.
According to available information, the source of the fire was a diesel hydroprocessing unit. The blaze has been brought under control, but smoke is still hanging over the site. The Valero facility accounts for nearly 2% of total U.S. refining capacity. Importantly, based on the latest crude inventory reports, the biggest shortages in the supply chain are occurring on the refining side rather than in crude itself.Notably, the refinery is one of the key producers of, among other things, jet fuel. This is currently the most scarce type of fuel due to the conflict in the Persian Gulf. At present, nothing indicates that the refinery’s overall output has been reduced in a way that would be significant for the market or the economy.
It is worth remembering, however, that Iranian officials had warned Donald Trump of possible “surprises” and price increases. There is currently no evidence of this, but it is not an unfounded suspicion that this incident may not have been an accident, and that it may not be the only event of this kind we will see in the coming weeks.
Chart of the Day: USDJPY at a Crossroads. Will the Government Step In?
Morning Wrap: Trump Announces a “Pause”. Another 10-Day Ultimatum!
Daily Summary: Wall Street on the edge; SILVER drops 5% 🚨
The US100 is down nearly 2%; Microsoft freezes hiring in its cloud and sales divisions💡
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.
