Valero Port Arthur Fire Knocks Out 435,000 BPD, Diesel Futures Up 16¢
A Valero refinery in Port Arthur, Texas processing 435,000 barrels per day caught fire, fueling wholesale diesel futures to jump 16 cents. National diesel prices have risen to $5.38 per gallon after a 96-cent weekly spike driven by supply cuts and a Strait of Hormuz closure.
1. Refinery Fire Incident
On March 30, a fire erupted at Valero’s Port Arthur refinery in Texas, which processes 435,000 barrels per day. The blaze forced an immediate shutdown of affected units, removing significant refining capacity from the Gulf Coast and prompting emergency safety protocols.
2. Diesel Market Reaction
The outage triggered a 16-cent spike in wholesale diesel futures as traders priced in tighter supply. Combined with geopolitical disruptions closing the Strait of Hormuz, national diesel averages surged to $5.38 per gallon, representing the largest weekly increase on record.