Colorado Gas Prices Climb. Here’s why

A refinery problem in Indiana is causing gas prices to rise in Colorado. The average price at the pump rose 7 cents in Colorado in the last week to $2.84 a gallon, according to gasbuddy.com. Here's more via Bloomberg:

“It’s such an important refinery smack in the middle of the Midwest,” said Phil Flynn, senior market analyst at Price Futures Group in Chicago. “It’s like dropping a bomb in Chicago and watching the shockwaves ripple out to the rest of the country.”

The refinery can process as much as 270,000 barrels a day of heavy crude sent by pipeline from Alberta, with additional supply shipped up from Cushing, Oklahoma, the U.S. storage hub. BP oil traders have offered to sell a variety of heavy Canadian crudes, according to three market participants.

 

Prices spiked more than 50 cents a gallon in Indiana, Illinois and Michigan. Other Midwest states recorded increases of 10-25 cents a gallon. Gas prices in Colorado remain well above the national average.