California gas prices may spike as imported oil supply dries up
New York Post • • business
Key Points:
- California faces increased competition with other states and international markets for oil resources as its imported supply diminishes, according to Jodie Muller, CEO of the Western States Petroleum Association.
- The last shipment of oil from the Middle East through the Strait of Hormuz to California has been unloaded, highlighting the state's vulnerability amid ongoing geopolitical tensions and refinery shutdowns.
- Recent refinery closures in California have reduced the state's refining capacity by about 20%, increasing reliance on foreign crude oil, which now accounts for roughly 60% of California’s supply.
- Officials estimate California has about six weeks of fuel reserves if disruptions continue, but beyond that, supply shortages and significant price increases are possible.
- California’s strict fuel blend requirements and environmental policies complicate supply stabilization efforts, with industry leaders urging lawmakers to reconsider regulations that may further weaken local refining infrastructure.