Calif. gasoline production INCREASES after refinery blast, but prices soar anyway
Source: San Francisco Chronicle
Gas prices in California remain significantly higher than they were prior to the Aug. 6 fire at Chevron's Richmond oil refinery - despite the fact that the blaze didn't impact gasoline production in the state as initially feared.
In fact, the state's refineries churned out more gasoline last week than they did the week before the fire, not less.
... The situation infuriates oil industry critics. Gas prices shot up in the days after the fire, jumping 24 cents per gallon in the first week. But the extra cost wasn't the result of an actual shortage. Instead, analysts say, the increase started with traders bidding up the wholesale price in expectation of a shortage in the first few days after the fire.
... California's average for a gallon of regular hit $4.12 on Friday, according to the AAA automotive club. The national average reached $3.72. On Aug. 6, the day of the fire, the California and national averages were $3.85 and $3.62, respectively.
Read more: http://www.sfgate.com/business/article/Gas-costs-more-in-absence-of-shortage-3797116.php
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