PES to close oil refinery after fire damage

Philadelphia Energy Solutions (PES) will close its oil refinery in the city, following a large fire last week that damaged the complex.

Following the announcement by Philadelphia mayor Jim Kenney that the PES refinery will shut down within the next month, Marc Amons, senior research analyst, North America refining at Wood Mackenzie, said: "With 335,000 barrels per day (b/d) of crude processing capacity, the Philadelphia refinery is a major supplier of gasoline and diesel into US east coast markets, yielding approximately 125,000 b/d of gasoline and 110,000 b/d of diesel.

"Should Philadelphia Energy Solutions pursue a permanent shutdown of the plant, increased imports of clean products into the region will be necessary to meet demand.

"The US Gulf Coast will remain a key supplier of refined products with supplemental gasoline imports from Europe likely needed to replenish lost production from the facility.

"Retail gasoline prices in the Northeast region of the US will become increasingly dependent on import economics from Europe and have potential to experience a sustained increase, with the remaining east coast refiners well-positioned to capitalise on stronger gasoline cracks."