By Brent Fergeson | Director of Supply
West Coast spot prices as well as cash basis have remained at some of the highest in the country so far in 2022. A series of refinery issues, train derailments and isolated power outages. These factors have all played a part in the volatile and high-priced landscape. Contributing to this is tighter supply of gasoline and diesel. The shutdown of an estimated total of 285,000 bbls/day of gasoline and diesel production. These volumes went off-line. They are replacing an estimated 1.5 billion total gallons of renewable gasoline and diesel products per year.
Imports into California have been minimal to non-existent. While exports have remained low, the result is the classic supply/demand model. Tighter supplies combined with a return to normal demand, post COVID pandemic. Demand is approaching 2019 pre-pandemic levels. As driving season kicks into full gear. It will not surprise us to see strength in basis and cash prices throughout the Summer and Fall.