Latest news with #fuelimports
Reuters
a day ago
- Business
- Reuters
California fuel imports hit 4-year high amid refinery outages
NEW YORK, June 9 (Reuters) - California's fuel imports rose to the highest in four years in May as refiners turned to historical trading partners in Asia and tapped some unusual routes to make up for shortages in the No.2 U.S. oil consumer state, according to shipping data and traders. The rise in shipments to California offers an early look at the future of the biggest gasoline and jet fuel markets in the U.S., which are expected to become more reliant on imports after Phillips 66(PSX.N), opens new tab and Valero(VLO.N), opens new tab close two major refineries in the state by next year, amid growing regulatory and cost pressures, and declining demand for gasoline. "California's refining capacity is shrinking faster than its fuel demand is declining, forcing the state into a long-term import-dependent position," Kpler analyst Sumit Ritolia said. California's total petroleum product imports rose to 279,000 barrels per day (bpd) in May, the highest since June 2021, when a similar volume was imported, according to data from vessel tracker Kpler. About 187,000 bpd, or nearly 70% of the imports came from South Korea and other Asian exporters, who have historically been the top trading partners for California and other West Coast states, which are geographically isolated from major U.S. refining centers along the Gulf Coast. Recent outages in California at refineries owned by Chevron (CVX.N), opens new tab, PBF Energy (PBF.N), opens new tab and Valero(VLO.N), opens new tab caused a supply crunch in markets along the U.S. West Coast that necessitated more imports, traders and analysts said. "We have seen tighter supplies due to several refinery outages," StoneX oil analyst Alex Hodes said. That boosted prices in the U.S. Pacific Northwest substantially and led to increased imports, he said. There were several days where San Francisco gasoline was more than $40 a barrel above Gulf Coast pricing, nearly double the year-to-date average of $21, WoodMac analyst Austin Lin said. California's imports from the Bahamas, a trade route rarely used by West Coast refiners, hit a record high of 38,000 bpd in May, Kpler data showed. The previous record was 29,000 bpd in March. Flows on the route from the Caribbean were sporadic before this year's refining outages, averaging just 6,000 bpd throughout last year, the data showed. The Bahamas does not refine oil but exports fuel and blending components shipped there from the U.S. Gulf Coast refining hub as part of a workaround to a century-old U.S. shipping law to supply fuel to the East Coast when pipeline shipments are insufficient. The Jones Act bars movement of goods between U.S. ports unless carried by ships built domestically and staffed by local crew. However, there were only 55 such petroleum tankers as of the start of 2024, according to a government report, making them expensive and hard to procure. Sailing a tanker from Texas to California via the Bahamas is typically too expensive, but the recent refinery outages opened up the arbitrage to the West Coast from everywhere, a second U.S. gasoline trading source said. Ample availability in the Atlantic Basin of alkylate - a blending component highly sought for California's unique blend of CARBOB gasoline - could have also contributed to the uptick in imports from the Bahamas, Sparta Commodities analyst Philip Jones-Lux said. Meanwhile, California imported 39,000 bpd of gasoline and alkylate from India last month, the highest since January 2024, Kpler data showed. More waterborne imports will raise fuel costs in the most populous U.S. state, GasBuddy analyst Patrick De Haan said. However, the opening up of these unusual trade routes in May shows the state still has options to shield consumers from extraordinary price spikes, he said. Retail gasoline prices averaged $4.68 a gallon in California on Friday, while the national average was $3.12, according to GasBuddy data.
South China Morning Post
17-05-2025
- Business
- South China Morning Post
Indonesia slams Singapore's ‘shameful' fuel prices, plans pivot to US imports
Indonesia plans to slash fuel imports from Singapore and pivot to supplies from the United States and the Middle East, in a move that analysts see as a bid to reduce its dependence on the neighbouring city state and gain a strategic advantage in trade talks with Washington. The oil-producing nation could redirect up to 60 per cent of its fuel imports away from Singapore over the next six months as part of a broader diversification strategy, Energy and Mineral Resources Minister Bahlil Lahadalia told reporters on May 9. 'It is not only a matter of price but also geopolitical issues. We need to have a balance with other countries,' Bahlil said, adding that Indonesia aimed to progressively reduce imports from Singapore to zero 'some day'. The minister criticised Singapore's pricing practices, arguing that despite its proximity, the city state sold fuel to Indonesia at prices similar to those offered to buyers in the Middle East. '[Singapore] does not have oil, but we buy from there. Of the total production, 34 per cent of the market is in Indonesia, [yet] the price is the same as the Middle East. I say this is a shameful strategy,' Bahlil said. Despite not producing crude oil, Singapore is a major refining hub and a key supplier of petroleum products across the region. More than half of Indonesia's oil imports now come from the city state, as declining output has left it unable to meet domestic demand.
CNA
13-05-2025
- Business
- CNA
Indonesia's plan to cut fuel imports from Singapore could disrupt trade flows, but fallout likely minimal: Analysts
SINGAPORE: Indonesia's plan to cut fuel imports from Singapore could pressure trade flows amid tariff talks with the United States, but observers said they believe the broader impact on Singapore's economy will be limited. Analysts told CNA that diversification of the economy into areas such as technology and manufacturing will continue to prop up growth. However, they cautioned that there may be indirect impact on the transport and storage services and wholesale trade sectors. This comes as Indonesia is looking to change the source of some of its fuel imports from Singapore to the US. It is currently negotiating the 32 per cent tariffs that the US wants to impose on Indonesian goods. These tariffs have been paused until July. ADDRESSING TRUMP TARIFFS Singapore is a major global refining hub and supplier of fuel. In the first four months of 2025, it exported more than 54,000 barrels of gasoil and 8,300 barrels of jet fuel daily to Indonesia. Indonesian Energy and Mineral Resources Minister Bahlil Lahadalia said last Friday (May 9) that it could shift as much as 60 per cent of its total fuel imports from Singapore to the US in the early stages. Jakarta is looking to ramp up fuel imports from the US, as part of a wider proposal to address US President Donald Trump's punitive tariffs. Despite this, experts believe the impact on Singapore's economy would be minimal. "Even if Indonesia were to scale back their imports, Singapore is resourceful,' said John Driscoll, director of energy market intelligence provider JTD Energy Services. 'They've got an infrastructure, refineries, storage terminals, support services, and besides that, they are the major pricing point east of Suez,' he added, referring to areas located east of the Suez Canal. 'You've got all of the major technology companies setting up the offices out here - Facebook, Google, Amazon. Singapore is not as dependent on oil, and I think that's been a deliberate strategy on their part. They want to diversify away from a reliance on oil.' EXCESS OIL SUPPLY The oil industry makes up around 5 per cent of Singapore's overall gross domestic product (GDP). This is smaller compared to other sectors such as manufacturing, which contributes about 20 per cent of the economy. However, analysts warned that if other countries follow in Indonesia's footsteps, the impact could be multiplied. "There could be second-round effects on the transport and storage services sectors, the wholesale and retail trade sectors could also be affected, because the activity drops. That could also limit the port activities,' said Mr Jeff Ng, head of Asia macro strategy at SMBC. 'When you have less demand, the manufacturing sector and the services sector may also be impacted.' Other potential short-term challenges include excess oil supply that could push prices down, said experts. Even then, they said the market is likely to stabilise over time. 'Singapore most likely will be stuck with a little more oil because there is no buyer of it,' said economics professor Sumit Agarwal of the NUS Business School. 'That should provide downward pressure on Singapore oil that they are selling to, say Malaysia and other countries. So profitability will go down for the refining business for Singapore. 'But in the medium term, Singapore will find other buyers who could be suitable buyers for Singapore's refined oil, and things will be fine.' Potential players in Singapore's market could include countries from the Middle East, said observers. There may also be interest from investors like hedge funds and banks.
CNA
09-05-2025
- Business
- CNA
Indonesia eyes cut in fuel imports from Singapore in favour of US as part of tariffs negotiations
JAKARTA : Indonesia plans to change the source of some of its fuel imports from Singapore to the United States as part of negotiations over steep tariffs, its energy minister said on Friday (May 9). The United States has imposed a 32 per cent tariff on Indonesian goods, but like other countries, implementation has been paused until July to make room for negotiations. Minister Bahlil Lahadalia said the change of some fuel imports away from Singapore would happen gradually. Indonesia could shift as much as 60 per cent of its total fuel imports from Singapore to the United States in the early stages, he said. "It is almost certain that we will take other fuel imports from other countries, not from that one (Singapore)," he told reporters, adding the shift could happened in the next six months. Increasing fuel imports from the United States is part of a wider proposal that Indonesia has made to Washington to address the tariffs. The government has said that it wants to increase US energy imports by about US$10 billion, which also includes buying US fuel, crude oil and liquefied petroleum gas Bahlil has said that as part of the negotiations, Indonesia wants to import 10 times more US crude than now. At present, about 4 per cent of its crude imports are from the United States. State energy firm Pertamina has said that it will be ready to execute the plan and might need to increase its fuel storage capacity in order to store US fuels.
Bloomberg
09-05-2025
- Business
- Bloomberg
Indonesia to Cut Fuel Imports From Singapore in Favor of US
Indonesia will cut its fuel imports from Singapore and source supplies from the US and Middle Eastern countries instead, according to the country's energy minister. Southeast Asia's largest economy will look to gradually eliminate its shipments of oil products from Singapore, which account for more than half its imports, Energy Minister Bahlil Lahadalia told reporters on Friday. Purchases will be switched to suppliers in the US and Middle East as Indonesia seeks lower prices and a 'better balance' in the changing global geopolitical environment, Lahadalia said.
