California oil refiners generated a profit margin of $1.29 per gallon in May, marking a sharp increase from the 44 cents per gallon reported in January, according to data released by the California Energy Commission (CEC). Consumer Watchdog stated that had the price gouging penalty authorized by the legislature under SBx1-2 in 2023 been implemented, refiners would have been required to return at least $610 million to the state's drivers for overcharges during the March through May period. The analysis assumes a penalty level of $1 per gallon, which the group defines as an extraordinarily high gross refining margin.

The CEC has not developed the price gouging penalty regulation despite the legislative authorization. Overcharges calculated by Consumer Watchdog amounted to $322 million in May, $266 million in April, and $22 million in March. Jamie Court, president of Consumer Watchdog, criticized the lack of regulatory action, stating that the Energy Commission needs to reinstate the penalty to deter profiteering and return funds owed to consumers.

The monthly profit data is published under SB 1322, 2022 legislation by Senator Ben Allen requiring the CEC to release gross refining margins and other data supplied by refiners. The report indicates that the most profitable refiner in the market, typically Chevron, reported gross profits of $1.34 per gallon in May. Senator Allen is also the co-author of new legislation, SB 493 (Becker), which aims to prohibit price increases exceeding 10% above cost during a declared state of emergency or war.

Iraq suspended oil loadings at the Basrah export terminal following a drone attack on a tanker, disrupting crude exports from the region. The incident highlights the vulnerability of critical energy infrastructure to security threats in the area.

Impact on Operations

The suspension affects the flow of oil from one of Iraq's key export terminals. Operations were halted as a precautionary measure following the attack, which targeted a vessel involved in the loading process.

Incident Details

The disruption comes amid heightened tensions in the region, posing risks to the stability of oil supplies. Authorities are expected to assess the situation before resuming full operations.