California is a state located on the west coast of the United States, bordering the Pacific Ocean and Mexico. It is the most populous state in the USA and one of the most economically important regions in the worldwith highly developed technology, entertainment, agriculture and industrial sectors. California is home to such famous cities as Los Angeles, San Francisco and San Diego, as well as Silicon Valley, which is the global center of the technology industry.
“California's gasoline stocks have fallen to record lows as fuel prices skyrocket across the country amid the war with Iran. Analysts warn the full effects of supply disruptions related to the Strait of Hormuz closure have not yet hit the Golden State“- reports Reuters.
California drivers paid an average of $5.86 on Thursday, according to the American Automobile Association. per gallon, which is the highest price in the US and significantly exceeds the national average of $4.09. per gallon.
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However, since this state relies on refined products from Asia, the crisis is expected to deepen.
“The Energy Commission remains in close contact with all refineries in the country to ensure adequate supplies of transportation fuels during this volatile period of supply constraints due to the de facto closure of the Strait of Hormuz,” agency spokeswoman Niki Woodard said, as quoted by Reuters.
Statewide gasoline inventories averaged 9.44 million barrels in the four weeks ended April 10which is the lowest in the California Energy Commission's data set dating back to 2005. These inventories consist of inventories of California blended gasoline, blend components, and non-California gasoline.
California isolated from domestic fuels
Reuters notes that the state of California is susceptible to price shocksBecause it is isolated from domestic fuel pipelinesforcing it to rely more on imports from Asia, where refineries import crude oil from the Middle East and turn it into gasoline and other products for use on the U.S. West Coast.
See also: The US is in trouble. The specter of recession is looming
The state used to be a large oil producer, but has become more dependent on imports of crude oil and fuels in recent years as two refineries that accounted for about 20% of the country's output have been closed. California processing capacity.
