BP Refinery Blast Reignites Higher Crude Oil Prices
TEXAS CITY, TEXAS — After a one-day break from near-record prices, the price of crude oil went up again after an explosion at British Petroleum’s refinery in Texas City, according to Land Line Magazine.
After dropping below $54 for a single day, oil on the New York Mercantile Exchange was up to $54.84 at the end of trading Thursday, March 24. The closing price was roughly a dollar above the previous day’s.
The explosion Wednesday, March 23, killed 15 people at the Texas facility, which media outlets identified as the third-largest refinery in the United States. The facility supplies 30 percent of BP’s total U.S. output of all petroleum products, and 3 percent of the overall national supply.
Ross Pillari, president of BP America, said the company would cooperate with local, state and federal authorities as they attempt to determine what caused the explosion. Meanwhile, Reuters news service reported that company officials had ruled out terrorism as a cause.
The explosion came at a bad time. The price of crude oil on the New York exchange had been flying at record levels near $57 a barrel. It dropped slightly for one day March 23 after the government issued a report indicating higher-than-expected stocks of fuel in the United States.