India Halves Alkylate Exports to 33,000 Bpd as California Gasoline Hits $6.14

7 articles · Updated · Reuters · May 18

India's alkylate exports fell to 33,000 barrels per day in April from 61,000 bpd in March as refiners diverted LPG feedstock to cooking fuel, tightening supply for California gasoline blenders.
California's average gasoline price reached $6.14 a gallon Friday, after a May 7 peak of $6.16, with analysts warning prices could top $6.50 as summer demand meets low stockpiles.
The squeeze stems from the U.S.-Israeli war with Iran and the near-closure of the Strait of Hormuz, which disrupted roughly one-fifth of global oil supply and cut India off from Middle Eastern LPG.
California faces a double hit: Asian refiners are exporting less fuel because crude access is constrained, while India's reduced alkylate shipments make the state's cleaner-burning gasoline blend harder and costlier to produce.
Governor Gavin Newsom's main emergency option may be waiving California fuel specifications, though the California Energy Commission says supplies remain healthy and such a waiver would not help.

With a distant war raising California gas prices, how vulnerable are our complex global supply chains?

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