California fuel imports rise to four-year high; reliance seen growing with planned refinery closures

 California's fuel imports climbed to the highest in four years in May to 279K bbl/day, as refiners turned to trading partners in Asia to make up for shortages in the state, Reuters reported Monday, citing shipping data and traders.

Recent outages in California at refineries owned by Chevron (CVX), PBF Energy (PBF) and Valero Energy (NYSE:VLO) caused a supply crunch in markets along the West Coast that prompted the need for more imports, traders and analysts said.

The state's reliance on fuel imports likely will grow after Phillips 66 (NYSE:PSX) and Valero (NYSE:VLO) close two major refineries in the state by next year, thanks to growing regulatory and cost pressures.

"California's refining capacity is shrinking faster than its fuel demand is declining, forcing the state into a long-term import-dependent position," Kpler analyst Sumit Ritolia said.

Retail gasoline prices averaged $4.68/gal in California on Friday, while the national average was $3.12/gal, according to data from GasBuddy.

https://www.msn.com/en-us/money/markets/california-fuel-imports-rise-to-four-year-high-reliance-seen-growing-with-planned-refinery-closures/ar-AA1GoIUq