Oil Rises to 1-Month High After Valero Shuts Delaware Refinery

(Bloomberg) — Crude oil rose to a one-month high after Valero Energy Corp. shut its Delaware refinery because of a power failure late yesterday.

Valero, the biggest U.S. refining company, said it is starting units at the Delaware City plant after the shutdown, caused by storm-related high winds. Prices also rose because the coldest weather of the winter moved into the U.S. Northeast yesterday.


“The Valero story is heightening nervousness about the refining industry,” said Nauman Barakat, senior vice president of global energy futures at Macquarie Futures USA Inc. in New York. “The big worry is that there will be a slew of problems as we prepare for the driving season this spring.”

Crude oil for March delivery rose $1.79, or 2 percent, to $93.56 a barrel at 12:14 p.m. on the New York Mercantile Exchange. Prices reached $94.72, the highest since Jan. 10. Futures touched a record $100.09 a barrel on Jan. 3.

Bloomberg