Chevron US Refinery Explodes, International Oil Prices Rise Slightly

According to foreign media reports, on the evening of October 2 local time, a refinery under Chevron Corporation suddenly exploded and caught fire in El Segundo, near Los Angeles, California. On October 3, international oil prices rose slightly during trading.

Local media reported that the explosion caused a blaze that lit up the night sky and was clearly visible from several kilometers away. A witness stated that the shock of the explosion was comparable to a small earthquake. Multiple emergency rescue teams have rushed to the scene to extinguish the fire, but the cause of the explosion and fire remains unknown. It is reported that there are usually one to two thousand employees in the factory area, and currently, there is no information on casualties. Los Angeles International Airport, which is located relatively close to the refinery, stated that the fire has not affected airport operations, and there have been no flight cancellations, diversions, or delays following the incident.

According to information from Chevron's official website, the El Segundo Refinery was built in 1911, covering an area of over 5 square kilometers. It can process 269,000 barrels of crude oil per day, accounting for more than 16% of California's total refining capacity. It supplies over 40% of aviation fuel and over 20% of vehicle fuel for the entire Southern California region. The potential oil price fluctuations caused by this incident have also drawn market attention.

As of 19:00 Beijing time on October 3, the WTI main contract rose by $0.34 to $60.82/barrel, an increase of 0.56%; the Brent main contract rose by $0.31 to $64.42/barrel, an increase of 0.48%. The current prices have fallen slightly from the intraday highs earlier. Overall, the explosion at the U.S. refinery has had a minimal impact on the crude oil market. Although there is short-term support for oil prices, the support is limited. The crude oil market is still facing significant bearish pressure, with expectations of increased oil supply and concerns about the U.S. government shutdown continuing to weigh on oil price trends.