USWC jet prices hit record high on supply disruptions, refinery issues

The US West Coast jet fuel differential and outright prices hit record highs on April 23 amid a lack of South Korea imports and local refinery disruptions.

Platts, part of S&P Global Energy, assessed USWC jet for Los Angeles at NYMEX June ultra low sulfur diesel plus $1.10/gallon on April 23, rising 30 cents/gal on the day, based on a trade heard at the same level in the latest Platts Market on Close assessment process.

The outright price for Los Angeles jet also rose to a record high of $4.9677/gal, increasing 22.98 cents/gal on the day to surpass the previous record of $4.8329/gal set on April 16, Platts data shows.

The outright price has risen $2.3317/gal, or 113%, since Feb. 27, the last session before the US-Israel war with Iran started.

"Local refineries are having hiccups, and imports from Asia aren't coming anymore to cover the gaps and keep prices in check," a US-based trader said.

USWC reliant on imports

South Korea, which was the largest supplier of jet fuel to the USWC in 2025, has had to source alternative crude barrels since the outbreak of the war in Iran to offset lost barrels from the Middle East.

South Korea accounted for more than 82% of jet imports to the USWC in 2025 with more than 109,000 b/d sent, according to S&P Global Commodities at Sea data. The next-highest suppliers in 2025 were China and Japan at roughly 10,000 b/d and 6,000 b/d, respectively, the data shows.

USWC supply could draw support from the Jones Act waiver, as rare shipments from the USGC have surfaced in April. The 60-day waiver issued March 18 lifts the restriction that requires all ships moving goods between US ports to be US-built, US-owned and US-crewed.

The Medium Range tanker STI Mystery loaded 323,000 barrels of distillates at the Port of South Louisiana on April 1, passed through the Panama Canal, and was signaling Nikiski, Alaska, for an estimated arrival of April 26, according to CAS data.

Additionally, the MR Torm Daphne loaded at Houston on April 5 and was expected to follow a similar voyage through the Panama Canal to the USWC, CAS data showed.

The West Coast was the only US region to see jet fuel imports rise in the week ended April 17, with volumes rising 71,000 barrels/day to 130,000 b/d, according to US Energy Information Administration data released on April 22.

Refinery disruptions dent supply

Market participants also pointed to disruptions at local refineries as tightening supply and highlighting the region's vulnerability after two separate facility closures in the last six months trimmed California's production capacity by more than 18%.

Chevron reported a process unit leak at its El Segundo, California, refinery on April 17, forcing a unit shutdown, according to a Hazardous Materials Spill Report filed with the California Governor's Office of Emergency Services.

Additionally, PBF Energy planned 12 hours of flaring at its Torrance, California, refinery over April 16-17, according to an April 15 filing with the South Coast Air Quality Management.

Meanwhile, Kinder Morgan and Phillips 66 are moving toward a final investment decision on the proposed Western Gateway pipeline system within the next few months, following a successful open season that secured shipper commitments for the project designed to supply refined products to Phoenix and California markets.

The project would convert Kinder Morgan's existing SFPP East Line into a 20-inch pipeline running from El Paso, Texas, to Phoenix, Arizona, with capacity sized to meet secured commitments plus anticipated growth, but project completion is not expected until around mid-2029.