Refinery Closure Fueling Gasoline Rally
Gasoline futures are rallying Wednesday morning on yet another refinery closure.
This time by Hovensa, a refinery jointly owned by Hess and Venezuela's state owned oil company.
As of morning trading, RBOB futures advanced nearly 3 percent on the announcement.
The markets that will be immediately affected include Boston, New York and Florida, where a spate of refinery closures have already set the stage for increased supply and price volatility in the futures and physical markets.
The refinery, located in the U.S. Virgin Islands, is a large refiner of petroleum products into the east coast, supplying an estimated 100,000 barrels per day of gasoline and 60,000 barrels per day of distillate fuels.