CEC: California Fuel Supply Adequate for Six Weeks


   
Miguel E. Andujar
DTN Refined Fuels Market Reporter

   DAVENPORT, FL (DTN) -- California has sufficient gasoline supply to meet 
demand for the next six weeks under normal operating conditions as refiners 
replace lost Middle East crude cargoes with alternative supplies, the 
California Energy Commission said in an updated market assessment.

   The CEC said Tuesday (9/22) it is in close communication with all California 
refiners and does not expect the state to run out of gasoline. The agency 
cautioned its six-week outlook assumes no major unplanned refinery outages 
occur. Beyond that period, the CEC said it remains "cautiously optimistic" 
about gasoline supply.

   California refiners and importers have established additional crude supplies 
from Latin America, Canada and other regions outside the Middle East conflict 
to offset disrupted cargoes, according to the CEC. Before the conflict, 
approximately 17% of California's crude oil supply moved through the Strait of 
Hormuz.

   The state is currently meeting gasoline demand through a combination of 
production from California refineries, existing inventories and imports, the 
agency said.

   California is also receiving finished petroleum products from other U.S. 
regions, including the Pacific Northwest, U.S. Gulf Coast and East Coast, while 
international supplies are arriving from countries including India, the United 
Kingdom and South Korea, according to the CEC.

   California's isolation from the country's major refining centers makes the 
state more dependent on waterborne shipments when local refinery production is 
insufficient to meet demand. The CEC said California has no petroleum-product 
pipelines connecting it with other major U.S. refining regions.

   The CEC monitors California refinery production and inventories through its 
Weekly Fuels Watch, with the latest available data covering the week ended 
September 16.




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