Gas prices rise as Irene nears

Associated Press

NEW YORK

East Coast refineries are likely to close in advance of Hurricane Irene’s arrival this weekend, analysts say. The shutdowns already are boosting gasoline prices.

The storm pounded the Bahamas on Thursday with winds of 115 mph, and it could reach East Coast refineries, which are concentrated in New Jersey and Pennsylvania, by Sunday afternoon.

Refineries already are starting to turn off equipment.

“Even if the storm eventually misses them, they can’t take chances,” says Ben Brockwell at the Oil Price Information Service, which monitors fuel shipments around the country.

Refineries are sprawling complexes of concrete and steel that turn oil into gasoline, diesel and other kinds of fuels. Though the main buildings are designed to withstand hurricane-force winds and earthquakes, some of their pipes, cooling towers and power lines are susceptible to wind damage. Utilities are expecting widespread power outages from winds and downed trees.

It takes several days for a refinery to start operating again after a shutdown. And many would need almost a month to get back to full operation.

Gasoline futures rose nearly 2 percent Thursday.

Tom Bentz, an analyst at BNP Paribas Commodity Futures, said traders are betting that supplies may be squeezed.

Drivers also should see pump prices rise this weekend as Irene approaches. People now are paying anywhere from $3.37 a gallon in South Carolina to $3.91 in Connecticut. Gasoline is down 40 cents from its peak of $3.98 on May 5. But it’s still 87 cents higher than at this time last year.