This Week In Petroleum – January 6, 2016
California begins 2016 with supply disruptions and higher prices
As 2016 begins, California is the only gasoline market in the United States now experiencing increasing prices and higher prices than at the same time last year. The California average regular gasoline retail price increased 22 cents per gallon (gal) over the past three weeks, and was $2.88 per gallon on January 4, 2016, 85 cents/gal higher than the U.S. average, and 20 cents/gal higher than at the same time last year. California's fuel supply problems date back to an extended outage at ExxonMobil's Torrance, California refinery that began in February 2016. The recent increase in prices follows a series of additional refinery outages throughout the West Coast, resulting in falling gasoline stock levels and the need to import gasoline from distant sources that require higher prices and longer transit times.
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