California law, refinery exit reflect ongoing fuel market challenges, EIA says [Yahoo! Finance]
Phillips 66 (PSX)
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Source: Yahoo! Finance
Energy Information Administration (EIA) said on Monday. WHY IT IS IMPORTANT California, the most populous U.S. state, consistently faces some of the nation's highest average gasoline prices, leading to an often tense relationship between the state and oil companies. The state is geographically isolated from the Gulf Coast and Midwest refining centers, and must produce all its own motor fuels or import them from Asia. However, imported fuels are likely to become a more important source of supply for California as refineries in the state struggle with profitability, the EIA said in an analysis on Monday. CONTEXT In October, California Governor Gavin Newsom signed into effect ABX2-1, a bill designed to prevent fuel supply shortages in the state. The bill requires refiners to maintain minimum fuel inventory levels and manage necessary refinery turnarounds and maintenance in consultation with labor and industry stakeholders, giving state regulators more control. Shortly after
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PSX
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