West Coast Spot Prices – Some of the Highest in the Country
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.
This article is part of Daily Market News & Insights
Tagged:
MARKET CONDITION REPORT - DISCLAIMER
The information contained herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Furthermore, no responsibility is assumed for use of this material and no express or implied warranties or guarantees are made. This material and any view or comment expressed herein are provided for informational purposes only and should not be construed in any way as an inducement or recommendation to buy or sell products, commodity futures or options contracts.
