NEW YORK -- Crude oil prices surged to their highest level in almost a year Friday as market fears of tight gasoline supplies encouraged buying, traders said.
On the New York Mercantile Exchange (NYMEX), crude oil for May delivery leaped to $16.17 a barrel, a gain of 50 cents on the day, and the highest settlement price since March 30, 1998, when it closed at $16.21.A massive explosion Thursday in the gasoline-making unit at one of Chevron Corp.'s major California refineries caused traders to bid up gasoline futures Friday, and that lifted crude and heating oil futures.
NYMEX April gasoline surged a whopping 2.22 cents to settle at 50.63 cents a gallon, the highest since May 15, 1998. And NYMEX April heating oil ended Friday's session at 42.74 cents a gallon, up 1.29 cents.
The explosion and fire at Chevron's refinery in Richmond, Calif., shut down the hydrocracker unit, which turns heavy oil into high-octane gasoline and jet fuel. The refinery, located near San Francisco, has a capacity of 240,000 barrels per day and the hydrocracker is rated at 45,000 bpd.