Oil Prices Rise On Concern About Supplies After Refinery Explosion

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Gasoline Reaches Record, Oil Rises After BP Texas Refinery Fire
March 24 (Bloomberg) -- Gasoline futures surged to a record and crude oil rose after an explosion at BP Plc's Texas City refinery, the third-largest in the U.S., raised concern about supplies before more drivers take to the road for vacation.

At least 14 people died and more than 70 were injured by the blast, BP refinery manager Don Parus told reporters in Texas City, Texas, yesterday. The plant can process 460,000 barrels of oil a day, supplying about 3 percent of U.S. fuel needs. Retail prices for U.S. gasoline also rose to a record this week.

``We know that prices will automatically react to any supply disruption because the entire oil-supply chain is working on a just-in-time basis,'' said Frederic Lasserre, the head of commodities research at Societe Generale SA in Paris. ``We have very low coverage in terms of stockpiles and this has stopped the selling wave.''

http://www.bloomberg.com/apps/news?pid=10000087&sid=an0ZZEVcvKqY&refer=top_world_news

Although temporary, it shows just how vulnerable the market is to supply disruptions