California fuel imports hit four-year peak due to refinery outages

GlobalData

Tue, Jun 10, 2025, 4:00 AM 2 min read

California has witnessed a surge in fuel imports, which have reached a four-year high as the state grapples with refinery outages, reported Reuters.

According to shipping data and traders, the increase is a response to supply shortages in the US' second-largest oil-consuming state.

Last month, California's petroleum product imports soared to 279,000 barrels per day (bpd), the highest mark since June 2021.

South Korea and other Asian exporters, which have long been primary trading partners for California, contributed nearly 70% of these imports, with approximately 187,000bpd arriving from the region.

The state's reliance on imports is expected to grow as Phillips 66 and Valero plan to close two major refineries by next year in the wake of regulation, costs and declining gasoline demand.

Recent disruptions at Chevron, PBF Energy and Valero refineries in California have exacerbated the supply constraints, necessitating increased imports to meet demand along the West Coast.

Notably, imports from the Bahamas reached an unprecedented 38,000bpd in May, surpassing the previous record of 29,000bpd in March.

The Bahamas, while not an oil refiner, exports fuel and blending components from the US Gulf Coast refining hub, circumventing the century-old Jones Act.

This US shipping law restricts the transport of goods between US ports to domestically built and crewed ships.

With only 55 compliant petroleum tankers as of early 2024, the scarcity and cost of these vessels make them challenging to secure.

Despite the high costs, the recent refinery outages have made it financially viable to ship fuel from Texas to California via the Bahamas, opening up the West Coast to broader trading opportunities, as noted by a US gasoline trading source.

"California fuel imports hit four-year peak due to refinery outages" was originally created and published by Offshore Technology, a GlobalData owned brand.

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