Oil Above $100 Following Refinery Explosion

While oil has broken $100 in the course of a trading day, this is the first time that it has closed above $100, $100.01/bbl, with a peak of $100.10 hitting in the middle of the day.

Gas is above $3.00 again.

I understand how a refinery fire can get gasoline prices to jump, but I am not sure why the explosion and fire at Alon USA's Big Spring, Texas, refinery would drive up oil costs. It seems to me that a reduction in refinery capacity would reduce the demand for oil.

Perhaps this facility is one of those tuned to the Venezuelan "sour" crude, and so it's increased demand for light sweet crude.