California Gasoline Situation Stabilises

Following a 50-cent per gallon spike that sent California retail gasoline prices to record levels and as high as $5/gallon in some areas, gasoline supply is finally stabilising in the region.  An upset at ExxonMobil’s 149.5 kbpd Torrance refinery on October 1, following a prolonged outage at Chevron’s 257 kbpd Richmond refinery that began in August, sparked a short burst of panic buying and led to closures of petrol stations that were unable to secure supplies.  The consumer outcry at the magnitude of the gasoline price surge and legislators’ impassioned calls for regulatory investigation were inevitable, but the entire episode served as a reminder of the isolated geography of that market and its dependency on local refining. Download here