Oil Prices Edge Higher After U.S. Refinery Fire but Head for Weekly Losses

PUKMEDIA

Oil prices.

Global oil prices rose by around 1% on Friday, 3 October 2025, following four consecutive sessions of decline, after a fire broke out at Chevron’s El Segundo refinery, one of the largest on the U.S. West Coast. Despite the rebound, both Brent and West Texas Intermediate (WTI) remain on course for their steepest weekly losses since late June.

According to Reuters, by 06:58 GMT, Brent crude futures were up 61 cents, or 1%, at $64.73 a barrel, while U.S. WTI gained 62 cents, or 1%, to $61.10.

Local officials confirmed that the fire, which erupted at the 290,000 barrels-per-day refinery, was confined to one area. Chevron also reported emergency flaring at the facility, which primarily produces gasoline, jet fuel, and diesel.

On a weekly basis, Brent is still down 7.6% and WTI 7%, reflecting concerns that OPEC+ may increase production further despite oversupply risks. According to sources, the group could agree to raise output by up to 500,000 barrels per day (bpd) in November, triple the October increase, as Saudi Arabia seeks to reclaim market share.

U.S. Energy Information Administration reported this week that crude oil, gasoline, and distillate inventories all rose as refining activity and demand weakened.

Meanwhile, the G7 finance ministers pledged fresh measures to increase pressure on Russia by targeting countries and entities expanding imports of Russian oil.



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