Some of America’s Oil Refineries May Be on Brink of Shutting [Yahoo! Finance News]
Valero Energy Corporation (VLO)
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Source: Yahoo! Finance News
Some of America’s Oil Refineries May Be on Brink of Shutting) -- The next step for some U.S. refineries that have already cut way back may be a full stop.Marathon Petroleum Corp. will idle its Gallup, New Mexico, refinery and related assets April 15, the company said. It’s the first U.S. facility to shut as the coronavirus pandemic empties skies of passenger planes and the roads of cars.It’s not likely to be the last. Major U.S. refiners, including Marathon, Valero Energy Corp. and Phillips 66, have lowered rates at their facilities to be at or near minimum levels as storage tanks fill up with fuel they can’t sell. While that “minimum” level differs from company to company, and in fact from plant to plant, it’s seen typically somewhere around 60% to 65% of capacity. Below that, many facilities need to be idled.“If after cutting rates to a minimum, refiners are still unable to move their products, they are faced with the prospect of completely shutting down,” said Andy Lipow, president
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