California to monitor oil traders as gasoline supplies tighten

[Fuel pump nozzle in hand with USA states flags on background - California]
Serhej Calka/iStock via Getty Images

California’s energy regulator has warned of potential gasoline shortages heading into year-end and said it will closely watch for traders attempting to profit from price spikes. In a letter to Governor Gavin Newsom, the agency pledged to scrutinize trades that could “unnecessarily” lift market prices, especially when firms stand to benefit from higher fuel costs, Bloomberg News reported Wednesday.

The state, which already has the nation’s highest pump prices, has experienced sharp surges in recent years, prompting new legislation to rein in fuel costs. California previously sued Vitol and SK Energy for manipulating the market during a 2015 spike, securing a $50 million settlement last year.

Shipping data show Vitol hasn’t delivered gasoline to the state since August, while other suppliers, including Trafigura and Reliance Industries, have stepped in to fill the gap.

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