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EIA: Refinery outages usually don’t affect prices

04/09/2007
A shutdown of any major refinery unit can reduce production of finished products. Integration of refinery units means that the outage of one can shut down or reduce operations at others. But refinery unit outages generally don’t have a significant product price impact, said the US Energy Information Administration in a late March report.“Prices are affected not by production changes alone, but mainly by the balance in supply and demand, as represented by inventory levels. If supplies are abundant relative to demand (e.g., high inventories and off-peak time of year), a refinery outage, even an unplanned outage, is likely to have little impact,” the federal energy forecast...
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