Two new refineries in Mexico and Nigeria are expected to start production next year, potentially adding 1 million barrels per day of fuel capacity and impacting refining stocks and gasoline prices. The increased capacity could slow or reverse the gains of refining stocks and hold down gasoline prices. Analysts predict that cracks, a measurement of margins used for refiners, will drop in the coming years. However, in the short term, refiner stocks and gasoline prices could continue to climb due to low fuel inventories and increased pressure from refinery outages and maintenance. Russia's temporary ban on gasoline and diesel exports may further tighten the global fuel market, offering potential upside for U.S. refiners.
The U.S. Environmental Protection Agency (EPA) has denied almost all outstanding petitions from oil refiners seeking exemptions from biofuel blending mandates. The agency rejected 26 petitions from 15 small refineries for the 2016-2018 and 2021-2023 compliance years, with two petitions still pending. The EPA also disclosed the names of refiners that submitted petitions and those participating in an alternative compliance schedule. President Joe Biden's administration aims to reduce carbon emissions and has not yet granted any waivers to refineries, in contrast to the previous administration. The EPA stated that none of the petitioning refineries demonstrated disproportionate economic hardship caused by compliance with the Renewable Fuel Standard.
California lawmakers approve a bill that would allow state regulators to consider punishing oil refiners when they make too much money off of California drivers. A Modesto family is asking for help after their 17-year-old daughter's wheelchair was stolen overnight. Two people are still in the hospital after a shooting on the grounds of the Gurdwara Sacramento Sikh Society Temple on Bradshaw Road on Sunday. Dodge Ridge ski resort in the Pinecrest area of Tuolumne County extends its season amid record snowfall. The Minnesota Timberwolves held back the Sacramento Kings on Monday night, stalling the team's hopes of securing a playoff berth for the first time since the 2005-2006 season.
California lawmakers have approved a measure that would allow state regulators to consider punishing oil refiners when they make too much money off of California drivers. The measure creates a new committee within the California Energy Commission that will be empowered to gather private business information and data from refiners to consider whether to set a cap on company profits and a potential penalty when the cap is exceeded. The funds from the penalty would go into a fund, which the Legislature would then determine how to spend. The approval comes six months after the governor called for action after gas prices spiked $2.60 more than the national average.
The California State Senate has approved Governor Gavin Newsom's proposal to allow state regulators to consider a penalty on oil refiners when they make too much money off of California drivers. The proposal would create a new group within the California Energy Commission to gather private business information and data from refiners to consider setting a cap on company profits and potential penalty when the cap is exceeded. The bill requires the state auditor to investigate the measure before 2033, and if found ineffective, would end the program.
