Oil traders in California to face increased scrutiny as fuel supplies grow scarce
California, known for its high pump prices, is once again facing potential gasoline shortages as the energy regulator closely monitors traders for profit-seeking activities that could unnecessarily increase market prices.
The state's current gasoline prices lead the nation, a trend that has been persistent in recent years, prompting new legislation aimed at controlling fuel costs. In an effort to address this issue, California has enacted new laws to rein in fuel costs.
The energy regulator's scrutiny comes after Vitol, a major supplier, ceased deliveries to California in August. However, other suppliers, including Trafigura and Reliance Industries, have stepped in to fill the gap left by Vitol. California previously sued Vitol and SK Energy for market manipulation during a 2015 spike, securing a $50 million settlement last year.
California's energy regulator has also warned of potential gasoline shortages heading into year-end. This warning comes as the API reports stock market draws, indicating a decrease in oil supplies.
In other news, gold has jumped to another record high, while crude oil inventory fell by 9.3M barrels for the week ended September 12, according to the EIA. Oil prices, however, eased after a recent rally in the leadup to the Federal Reserve meeting.
Despite the ongoing concerns about gasoline prices and potential shortages, the search results do not provide information about the companies currently supplying gasoline to California.
California's history of gasoline price spikes is well-documented, with sharp surges in prices being a recurring issue. As the energy market continues to evolve, it remains to be seen how these developments will impact California's fuel prices in the coming months.
