California Fuel Imports Surge Amid Refinery Closures
California's fuel imports reached a four-year high in May, driven by refinery outages and anticipated closures. This surge reflects the state's increasing dependence on external sources to meet its energy needs.
Reliance on Asian Markets
Refiners are turning to historical trading partners in Asia to compensate for local supply deficits. Approximately 70% of the imported fuel, totaling 187,000 barrels per day, originated from South Korea and other Asian exporters.
Impact of Refinery Issues
Recent outages at refineries owned by Chevron, PBF Energy, and Valero have significantly tightened supplies, necessitating increased imports and driving up prices. San Francisco gasoline prices saw a substantial spike compared to Gulf Coast pricing.
Unconventional Trade Routes
Imports from the Bahamas, a less common route for California, reached a record high. This highlights the creative measures being taken to ensure adequate fuel supply.
