Gasoline futures jump on a combination of higher crude and news BP (BP +1.76%) has shut down another unit at a key Texas refinery. This is the second shutdown in two weeks for the facility. UGA +1.5%. USO +1.0%.
The Mississippi flooding is expected to cause billions of dollars in damages, with one economist putting the figure at up to $4B. The deluge is heading towards the Gulf Coast, where many of the U.S.'s biggest refineries are located, hastening the return of $4-a-gallon gasoline.
Russia will suspend gas exports in May to quench domestic demand. Companies had switched fuel flows abroad to capitalize on rising energy prices and avoid domestic price caps. Russia has sent 3M tons of oil products abroad YTD, matching its total for all of 2010.