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Production at BP’s Ohio refinery halts after fire kills two employees

Story Highlights

BP announced two employees were killed after a fire broke out in its oil refinery in Ohio on Wednesday.

Oil and gas exploration company BP (GB:BP) reported a fire at its Husky Toledo Refinery in Ohio, which broke out on Tuesday night.

The fire was a result of an explosion at the refinery, which killed two of the company’s workers.

The company said in a statement, “It is with deep sadness we report that two BP staff injured in a fire at the BP Husky Toledo Refinery have passed away.”

The plant was shut down soon after the fire broke out, and was later put out. The exact reason behind the explosion is still unknown.

This is the third fire at the Toledo refinery after it suffered similar incidents in January 2022 and before that in November 2021. In August, the company reported a fire at its refinery in Whiting, Indiana, which later remained shut down for a week.

About the refinery

The Husky Toledo Refinery in Ohio is jointly owned by BP and Canada-based Cenovus Energy (TSE:CVE). Last month, both companies entered into an agreement whereby Cenovus will acquire the remaining 50% of the refinery currently owned by BP. The deal will be closed by the year’s end and is valued at $300 million in cash.

Currently, the refinery’s production output is 1,60,000 barrels of crude oil per day, and it supplies fuel to the U.S. Midwest markets.

What is the forecast for BP shares?

According to TipRanks’ analyst consensus, BP stock has a Moderate Buy rating based on nine Buy and four Hold recommendations.

The BP target price is 522.54p, which is 15% higher than the current level. The analyst price targets range from a low forecast of 400p to a high forecast of 700p.

Conclusion

The shutdown of the refinery will put extra pressure on the already tight level of fuel supply and could also lead to an increase in prices.

Disclosure

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