A storage tank fire that erupted at the Garyville refinery in southern Louisiana on August 25 has prompted Marathon Petroleum Corp. to undertake the shutdown of the third-largest oil refinery in the United States. While the blaze is currently contained and ongoing, Marathon representatives have confirmed that residents within a 2-mile radius were initially evacuated as a precautionary measure, although this order has since been lifted. The aftermath of the incident has already caused notable market fluctuations. Diesel prices experienced a 5% increase, while gasoline futures surged by approximately 4%. This unexpected outage raises concerns about the already below-average distillates stockpiles, particularly as U.S. demand for fuel is expected to rise in preparation for the upcoming harvest and heating seasons. Situated along the Mississippi River between New Orleans and Baton Rouge, the Garyville refinery is a significant producer. Its daily gasoline output of approximately 265,000 barrels accounts for around 3% of total U.S. consumption. Additionally, the facility generates about 230,000 barrels per day of diesel. The refinery boasts an impressive crude processing capacity of 596,000 barrels a day, making it a crucial component of the country's energy infrastructure. In response to the incident, the Louisiana Department of Environmental Quality has been actively monitoring the adjacent community. As of now, spokesperson Gregory Langley has reported that all readings are nondetect, providing assurance regarding the immediate environmental impact." — With assistance from Jennifer A. Dlouhy.
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