California Fuel Watchdog Probes Diesel Market as Liquidity Falls

Thin trading is causing disruptions to California’s spot diesel markets, prompting an investigation from state regulators as consumers contend with rising pump prices.

Fuel markets across the globe have been thrown into turmoil by the war in Iran. California, a state particularly susceptible to oil market shocks due to its reliance on imports, has seen the price of diesel rise to well above $7 a gallon, the highest level in the nation. Now traders and the state’s energy regulator are saying that the market for a key diesel grade, known as CARB ULSD, has become unusually illiquid in San ...