ExxonMobil Shuts Joliet Refinery After Power Outage, Fuel Market Faces Fresh Pressure

ExxonMobil has shut down its 264,000-barrel-per-day refinery in Joliet, Illinois, following a power outage that disrupted operations at the facility on Sunday.

The power outage occurred at approximately 3:30 p.m. Central Time, according to a statement from ExxonMobil.

Although electricity was restored at around 7:00 p.m., the disruption triggered the refinery’s safety flare system and resulted in a plant-wide shutdown.

ExxonMobil said it is currently assessing the condition and operational status of the refinery, while the exact cause of the power outage remains under investigation.

The company has not indicated the extent of any damage resulting from the incident or provided a detailed timeline for the full resumption of operations.

Energy intelligence firm IIR Energy said the refinery’s various units were being stabilised following the shutdown.

The firm expects the facility to return to normal operations by the end of the week, although the timeline could depend on the condition of individual processing units.

The Joliet refinery is a major supplier of refined petroleum products to consumers across the US Midwest.

ExxonMobil says the facility can produce approximately 11 million gallons of gasoline and diesel each day, making any prolonged interruption potentially significant for regional fuel supplies.

The latest disruption comes as global fuel markets are already facing considerable pressure.

The ongoing war involving Iran and attacks by Ukraine on Russian refineries have contributed to disruptions in global oil and refined-fuel supplies. Strong exports have also placed additional pressure on domestic fuel inventories in the United States.

Fuel prices have consequently continued to rise. The national average price of diesel in the United States surpassed $6 per gallon last week for the first time on record, according to GasBuddy data reported by Reuters.

A prolonged shutdown at the Joliet refinery could therefore add further pressure to an already tight US fuel market, particularly if other refineries experience operational difficulties or supply disruptions.

Market participants will be closely monitoring ExxonMobil’s efforts to stabilise the facility and restore production.

Any extended reduction in gasoline and diesel output could contribute to tighter supplies in the Midwest and potentially push fuel prices even higher.

ExxonMobil said investigations into the incident are continuing as the company works to assess the refinery and return its operations to normal.

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