Major US Refinery Shuts Down; Creates Oil Glut and Gasoline Dearth

Major US Refinery Shuts Down; Creates Oil Glut and Gasoline Dearth

A large gasoline refinery in the US state of Indiana has shut down for repairs after technicians discovered leaking pipes, Bloomberg reported.

The shutdown is expected to heavily affect gasoline supply in the Midwestern US, even more significant as it is currently in peak the demand of summer.

The refinery, owned by oil major BP, processes nearly 500,000 b/d of crude oil. A local ABC station in Chicago stated that the equipment requiring maintenance typically processes about half that amount—240,000.

Repairs are expected to take at least a month, and gas stations will have to source their fuel from other refineries during this period.

At the time of this writing, stations had already increased prices by 10% ahead of the supply shortfall.

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