California’s oil and jet fuel supply is getting slammed by a perfect storm of events
According to a report from Fortune, the ongoing war in the Middle East is sending ripples of fuel shortages across the globe, with California and the broader West Coast now bracing for significant impacts—particularly on jet fuel supplies—as Europe already contends with widespread disruptions.
According to a report from Fortune, the ongoing war in the Middle East is sending ripples of fuel shortages across the globe, with California and the broader West Coast now bracing for significant impacts—particularly on jet fuel supplies—as Europe already contends with widespread disruptions.
California, despite the United States leading global crude production, functions like an energy island, hemmed in by the Pacific Ocean and rugged terrain that complicates pipeline construction.
Strict regulations and premium fuel standards have further strained its refining sector. The state relies heavily on imports from Asia, a region itself squeezed by disrupted Middle Eastern supplies. This vulnerability has intensified at the worst possible moment.
Recent closures of major refineries have slashed nearly 20% of California’s refining capacity. The Phillips 66 facility in Los Angeles shut down last year, followed by Valero Energy’s Benicia refinery near San Francisco in April 2026. Valero is also evaluating its Wilmington site.
“It’s real terrible timing for California to see the loss of two refineries at a time when Asia is struggling with oil supplies of its own,” said Patrick De Haan, head of petroleum analysis at GasBuddy.
De Haan warned of escalating risks if no peace agreement materializes soon. “If we don’t have some concrete peace deal here in the next three weeks, then I’m really nervous for the West Coast this summer in terms of jet fuel,” he told Fortune. “That’s not going to be great for California’s economy.”
Airlines are already reacting. Norse Atlantic Airways canceled all summer flights from Los Angeles International Airport, while others including Delta, United, and Air Canada have cut routes or raised fares.
Jet fuel shortages typically strike before gasoline or diesel, threatening operations at hubs in Los Angeles, San Francisco, and Seattle. States including Washington, Oregon, Arizona, Nevada, Hawaii, and Alaska face similar pressures.
A temporary Trump administration waiver of the Jones Act is providing some incremental relief by allowing more domestic shipments from the Gulf Coast, but experts note it offers only limited help. Long-term solutions, such as the proposed Western Gateway Pipeline from Texas, won’t come online until 2029 at the earliest.
California gasoline prices already sit 45% above the national average, underscoring the state’s precarious position in a tightening global market. While current jet fuel stocks remain within historic norms, sustained high prices and flight adjustments loom as immediate concerns for travelers.
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