An explosion and fire at the Philadelphia Energy Solutions refinery recently may lead to a spike in gas prices across the East Coast of the U.S. Crude oil prices have already risen 10% last week alone.
The Philadelphia refinery is the largest oil producing company on the East Coast with upwards of 335,000 barrels of crude oil produced everyday. It is also one of the few refineries that make gasoline and jet fuel.
Gas prices are constantly fluctuating for numerous reasons, including rising tension between President Donald Trump and Iran. Although the President has cancelled planned strikes on Iranian targets, Iran has continually threatened to shut off the Strait of Hormuz, a major shipping route for oil leaving the Persian Gulf. This move would lead to a surplus in demand for oil exports from other suppliers.
The Organization of the Petroleum Exporting Countries (OPEC) will address these issues in its upcoming meeting on the first of July.