California’s Fuel Industry Is Shrinking

California will see almost one-fifth of its crude-processing capacity vanish in the next 12 months as two key refineries quit the business of turning oil into fuels.

Valero Energy Corp. and Phillips 66 plan to idle a combined 284,000 barrels of daily refining capacity by this time next year, moves that will squeeze the perennially tight motor-fuels market in the most-populous US state.