California's Strategic Shift: Saudi Gasoline At Olympus Terminals

In a rare shift of supply routes, California has turned to Saudi Arabia's Jubail Industrial Port for gasoline imports, data from oil analytics firm Kpler reveals. The change comes after maintenance shutdowns at India's Jamnagar refinery created a rare arbitrage opportunity, prompting Southern California's Olympus Terminals to discharge significant amounts of Saudi gasoline.

This move represents the first time since 2022 that California has received fuel from Saudi Arabia. So far in 2025, about 40% of the terminal's gasoline imports have come from the Jamnagar facility, which underwent maintenance-related shutdowns in April. Kpler analyst Yui Torikata noted that these disruptions pushed buyers to seek alternative supplies.

California's fuel imports surged to a peak not seen in four years as the state sought new pathways to replace its domestic refinery outages. Regulators are pushing for increased investments to expand fuel import capacity, especially as refineries supplying 17% of fuel needs prepare to close. Torikata highlighted forthcoming shutdowns of Valero Energy's Benicia refinery and Phillips 66's Los Angeles refinery as contributing factors to this strategic realignment.

(With inputs from agencies.)