California's Fuel Imports Reach Record High Due to Refinery Challenges - News and Statistics - IndexBox

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California's fuel imports soared to a four-year high in May, as the state grappled with refinery outages and increasing reliance on imports. According to Reuters, the state turned to traditional trading partners in Asia and explored less conventional routes to address fuel shortages. With the impending closure of major refineries by Phillips 66 and Valero, California's dependency on imports is expected to grow.

Data from vessel tracker Kpler shows that California's total petroleum product imports reached 279,000 barrels per day (bpd) in May, marking the highest level since June 2021. Nearly 70% of these imports, approximately 187,000 bpd, originated from South Korea and other Asian countries, which have historically been key suppliers for the state.

Recent refinery outages at facilities owned by Chevron, PBF Energy, and Valero exacerbated supply constraints along the U.S. West Coast. This led to increased import volumes to meet the demand. StoneX oil analyst Alex Hodes noted that these outages significantly tightened supplies, resulting in substantial price hikes in the U.S. Pacific Northwest.

California's imports from the Bahamas, a route rarely utilized by West Coast refiners, hit a record high of 38,000 bpd in May, as per Kpler data. This was a notable increase from the previous record of 29,000 bpd in March. The Bahamas, which does not refine oil, serves as a transshipment point for fuel and blending components from the U.S. Gulf Coast, circumventing the Jones Act's restrictions on domestic shipping.

The state's imports also included 39,000 bpd of gasoline and alkylate from India last month, the highest since January 2024. Sparta Commodities analyst Philip Jones-Lux suggested that the availability of alkylate, a key component for California's CARBOB gasoline, may have contributed to this uptick.

While increased waterborne imports could elevate fuel costs in California, GasBuddy analyst Patrick De Haan pointed out that these unconventional trade routes offer some protection against severe price surges. Despite the challenges, retail gasoline prices averaged $4.68 per gallon in California on Friday, compared to the national average of $3.12, according to GasBuddy data.

Source: IndexBox Market Intelligence Platform

This report provides an in-depth analysis of the market for processed petroleum oils and distillates in the U.S.. Within it, you will discover the latest data on market trends and opportunities by country, consumption, production and price developments, as well as the global trade (imports and exports). The forecast exhibits the market prospects through 2030.

This report is designed for manufacturers, distributors, importers, and wholesalers, as well as for investors, consultants and advisors.

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