California turns to fuel from the Bahamas as supply patterns shift

The article reports California has been receiving gasoline shipments from the Bahamas while India and South Korea supplied more product to the state last year; regional freight costs rose after the US eased sanctions on Venezuela, narrowing the cost gap between foreign and US-flagged ships.

The article reports that California has been receiving gasoline shipments from the Bahamas as part of recent adjustments in supply sources. It notes that refineries in Asia already produce gasoline blendstock at the grade required by California and can ship without transiting the Panama Canal. The piece also cites data showing India and South Korea supplied more product to California last year than the Bahamas, and that regional freight costs have risen after the US eased sanctions on Venezuela. Noted details: - California has received gasoline shipments from the Bahamas, according to the article. - India and South Korea supplied more gasoline to California last year than the Bahamas, as reported. - Asian refineries produce California-grade gasoline blendstock and can avoid Panama Canal transit when shipping, the article says. - Argus Media data cited in the article show the freight cost advantage of foreign ships over US-flagged vessels narrowed from nearly $4 a barrel to about $1 after the sanctions change. Summary: The narrowing freight cost gap and existing Asian production of California-grade blendstock are factors in shifting supply patterns for the state. How these trends will affect longer-term shipment choices and volumes is undetermined at this time.