Valero Refinery Exit Shifts California Fuel Supply Toward Imports

Valero Energy plans to ramp up fuel imports into California after the scheduled April shutdown of its Benicia refinery, underscoring ongoing pressures on the state’s refining capacity amid stringent environmental and energy policies. The company has already booked significant impairment charges totaling $1.1 billion on its California assets, including the Benicia and Wilmington refineries, reflecting diminished long‑term profitability expectations in that market. The shift from in-state production toward greater reliance on imported fuels could tighten regional supply-demand dynamics and increase sensitivity of West Coast fuel prices to movements in Oil – US Crude and global crude benchmarks.

Over the past month, prices for US crude futures (WTI) have declined about 4.1%, signaling moderated bullish momentum after prior gains and suggesting that macro concerns and demand uncertainty remain in play. From a short-term trading perspective, the 1-day technical outlook for WTI currently screens as a Strong Sell, indicating that near-term signals are skewed toward downside risk despite structural supply adjustments such as refinery closures. Investors can explore more updates, prices, and analysis across global markets at Commodities.