How Chicago’s Tornadoes Are Blowing up Gas Prices

Meanwhile, meteorologists say the US has experienced way more tornadoes this year than usual. 

Barely Escaped 

After a major ExxonMobil refinery outside Chicago scarcely avoided a tornado on Monday night, chaos ensued, including damaged properties and power outages.

But another negative impact could soon be felt: a giant increase in gas prices throughout the Chicago metropolitan region. 

Just Across the Road 

ExxonMobil’s Joliet Refinery is in neighboring Channahon, Illinois. On Wednesday, Channahon Fire Chief John Petrakis spoke with CNN, saying the tornado was very close – just on the other side of Interstate 55 from the refinery. 

Already Increasing 

The day following the tornado, gasoline futures for the Chicago area shot up 11 cents a gallon, according to Andy Lipow, president of consulting firm Lipow Oil Associates.

In contrast, other gasoline prices nationwide fell marginally. 

Lipow said the refinery’s power outage “is a significant event.”  

Climbing Some More 

On Wednesday, Global Head of Energy Analysis at OPIS Tom Kloza emphasized an additional climb of 4 cents per gallon in Chicago’s wholesale gasoline futures.

Not Just Any Refinery 

Kloza mentioned that the refinery is important enough to impact local prices significantly, despite the country’s generally low oil prices this summer and Hurricane Beryl’s impact on Houston did not result in price increases.

Monday Night Madness 

Chicago’s weather office stated that preliminary findings showed an EF-1 tornado hitting a part of Chicago on Monday night where western portions of the Loop were also included. 

Spreading Out 

According to the weather service, two other regions of suburban Chicago in Illinois were also struck by an EF-1 twister.  

Both Illinois and Indiana suburbs of Chicago reported EF-0 tornadoes. 

Will Take Some Time 

The National Weather Service also reported that the greater Chicago area that got attacked by storms on Monday night resulted in 11 tornadoes, including the one that struck Channahon.

As per Lipow’s statement, it will take a few days to get the Joliet refinery back to normal production – that is if no damage occurred beyond the power outage. 

Still Working On It 

ExxonMobil has not yet provided answers about its damage or operational plans going forward. 

Should the damage be significant enough to delay a return of production, gasoline will need to be shipped via pipeline up from the Gulf Coast. That will take a few weeks to reach the Chicago market, Lipow said. 

Limited Supply 

“There are three refineries in the Chicagoland area: BP (in Whiting Indiana) with a capacity of 440,000 barrels per day, ExxonMobil Joliet at 275,000 and Citgo in Lemont Illinois at 194,000,” Lipow stated. “When one of these refineries shuts, there is little to no cushion of extra supply in the area.”

Pointing Upwards 

Lipow added that he expects prices to start rising at Chicago stations almost instantly. 

According to AAA, the Chicago area has already reached $4.07 a gallon. However, based on Tuesday’s prices, that average decreased by 1 cent from the previous day. 

But It’s Not Only Chicago 

Meanwhile, hundreds of residents of a southern town in Illinois were ordered to evacuate on Tuesday as water started rolling over the top of a dam near Nashville. 

First responders fanned out to ensure everyone got out safely. 

Wind and Water 

Alex Haglund, a spokesperson for the Washington County Emergency Management Agency, said that there were no reports of injuries in the community of about 3,000 southeast of St. Louis. 

However, one woman had to be rescued after water flooded her home and reached up to her waist. 

Panic Ensues 

The NWS warned about a tornado in Des Moines, Iowa, one in Chicago, and no less than four others in the Chicago area while storms broke out throughout Monday afternoon and into the night. 

Hundreds of thousands of people lost power. At one point, even weather forecasters had to scramble for safety.  

A Hotspot for Storms 

In the US, about 1,200 twisters hit every year. Calculate the number of tornadoes that touch down in Canada, Europe, and Australia per year and it would still be fewer than in the US. 

Blame Geography 

Geography is mostly the problem that results in the large collection of massive thunderstorms 

The areas in the country where most of these storms occur, namely the Great Plains and Southeast, are known as “Tornado Alley” – and it has the ideal conditions for supercell thunderstorms.

How to Make a Tornado 

Twisters usually form when cool, dry air from Canada and the Rocky Mountains meet up with warm, dry air coming in from the Southwest. This then clashes with warm, wet air from the Gulf of Mexico.

This leads to the kind of atmospheric instability that allows the formation of supercell thunderstorms.

When is Peak Season? 

Tornado high season can differ according to where you live in the US. 

Normally, early spring to late July is when the most tornadoes show up. 

Timing Is Everything 

Interestingly, the majority of these storms form between 4 p.m. and 9 p.m. But the ones that hit overnight are usually the most dangerous, as most people are asleep. 

More to Come? 

According to AccuWeather Lead Long-Range Expert Paul Pastelok, “This has been an incredibly active year for tornadoes in the United States.” 

Storm Prediction Center claims the US has already had 1,412 tornado reports as of July 16th. This is well above the 2010-2024 historical average of 997. 

In fact, this year has already experienced more twisters than the average annual total of 1,402.

Quota Already Exceeded 

Tornadoes occurring at the end of April and during May quickly pushed 2024 above the historical average. 

But that number has been climbing since a steady stream of twisters hit the country, including the 43 that formed during Hurricane Beryl, according to the NWS.

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