Friday, October 5, 2012

Gasoline Prices Set to Rise Through Election Day

Retail gasoline prices, already at the highest levels on average since July 2008, are likely to continue to climb this month as refinery and pipeline problems overshadow weakness in U.S. consumer demand.

On Wednesday night, a fire broke out at Exxon's (XOM) Baytown, Texas refinery, a 584,000 barrel per day facility that is the largest operating refinery in the U.S.

Exxon said there may be "some impacts to production" from the fire, but the plant will resume normal operations. A partial shutdown of the Colonial Pipeline, the nation's largest oil product pipeline, also contributed to supplies fears, as it impacted the portion of the line carrying gasoline from Atlanta to Nashville.

"It will only take another refinery issue and a bit more of geopolitical noise to have the first U.S. election at a US average gasoline price of $4 a gallon," says energy analyst Olivier Jakob of Petromatrix. Learn More...

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