Skip to content

Huge U.S. Gulf Refinery Shutdowns Are Spooking the Gasoline Market

  • Marathon Galveston Bay downed during frigid Texas weather
  • Two Valero refineries, one Chevron plant are also shut
Marathon's Galveston Bay oil refinery in Texas City, Texas.
Marathon's Galveston Bay oil refinery in Texas City, Texas.Photographer: Go Nakamura/Bloomberg
Updated on

When the second-largest U.S. refinery shuts down unexpectedly with no clarity as to when operations will return to normal, it could have an outsized impact on a market already squeezed for supplies.

Marathon Petroleum Corp.’s 593,000 barrel-a-day Galveston Bay refinery in Texas City, Texas, got knocked out of commission Friday as frigid temperatures took out power across the Gulf Coast city. Marathon declined to comment on operations but the refiner has started buying some oil product, indicating it needs to cover obligations to customers, according to a person familiar with operations. Marathon may take several weeks to resolve issues that cropped up during the shutdown.