U.S. Gulf Coast Refineries May Cut Output Due to Colonial Outage
- Colonial pipeline not expected to reopen before weekend
- Gas stations from Louisiana to Virginia run short of fuel
A refinery in Port Arthur, Texas.
Photographer: Luke Sharett/BloombergThis article is for subscribers only.
Most U.S. Gulf Coast oil refineries are expected to trim output as an extended shutdown of the Colonial Pipeline Co. system cuts off their main conduit for getting products to markets from Houston to New Jersey.
Much of the cuts may be shouldered by refineries from Port Arthur, Texas, and eastward, which lack the option of placing barrels on pipelines that serve the U.S. Midwest. About 13% of the 4.7 million barrels of capacity in that region has been cut since the weekend and that could rise to about 15%, according to estimates by London consultancy Energy Aspects.