Enbridge had a 1200 barrel spill in one of their pipelines on Friday in Wisconsin. Although they replaced the pipe that was damaged on Tuesday, they won’t be getting it back online until the U.S. Transportation Secretary is convinced that they can reopen without another spill.
That is causing Citgo’s Lemont, Illinois plant some problems, as it’s been shut down due to other issues, but won’t come online until the crude is flowing again. If that weren’t enough, BP’s Whiting, Indiana refinery had a small fire that took down the facility on on the 23rd of July. It still has not reopened, and may not reopen for at least two weeks, maybe more.
What does this mean to you? Higher gas prices. It’s as simple as supply and demand. Will we see prices rise above $4? Some parts of Michigan have. It’s a magical barrier, and I think the 61.3¢ boost in Chicago CBOB price since July 25th when averages were in the $3.50-3.65 range will warrant it. If the barrier is broken, Indiana and Michigan could see upwards of $4.10, while Ohio should stay below $4.