MARKETWIRE ALERTS

MARKETWIRE ALERTS 

MarketWire Afternoon News for February 18th:

Updated at 5:00 PM ET 

HEADLINES:

— API: Crude Stocks Dip 609,000 Bbl on Wk; Products Fall

— AAR: Petroleum Carloads Up 0.1% for Week to Feb. 14

— Fed Minutes: Rates May Have to Rise on Sticky Inflation

— Flare at Marathon Catlettsburg Refinery After Power Outage

— EIA: U.S. Retail Diesel Climbs 2.3cts on Week

— EIA: U.S. Retail Gasoline Rises 2.2cts on Week

NEWS:

API: Crude Stocks Dip 609,000 Bbl on Wk; Products Fall

The American Petroleum Institute (API) reported on Wednesday (2/18) a decline in commercial crude oil, gasoline and distillate fuel inventories for the week ended February 13.

API said commercial crude oil stocks fell by 609,000 bbl in the week profiled, while inventories at the Cushing, Oklahoma delivery point for NYMEX WTI futures dropped by 1.36 million bbl.

Gasoline stocks declined by 312,000 bbl while distillate supply fell by 1.56 million bbl in the reference week.

AAR: Petroleum Carloads Up 0.1% for Week to Feb. 14

The Association of American Railroads (AAR) reports that petroleum and petroleum product carloads totaled 10,963 during the week ended February 14, up by a meager 0.1% from the same week a year ago.

Year-to-date, petroleum and petroleum products carloads totaled 65,134, up 3.7% from the corresponding period of the prior year, an AAR report published on Wednesday (2/18) showed.

Weekly traffic for the profiled week totaled 510,399, up 6.2% from the same week a year ago.

Total carloads for the week to February 14 reached 225,283, higher by 7.7% from the same week of last year.

Weekly intermodal volume was 285,116 containers and trailers, up 5% from the corresponding week of the prior year.

Year-to-date, U.S. railroads reported carloads at 1,297,249, up 3.4% on the year.

Cumulative intermodal units were 1,631,915, down 1.8% from a year ago.

Total rail traffic for the first six weeks of the year was 2,929,164 carloads and intermodal units, up by 0.4% on the year.

Fed Minutes: Rates May Have to Rise on Sticky Inflation

Federal Reserve officials appear divided over the direction of U.S. interest rates, with some policymakers suggesting that borrowing costs may have to rise if sticky inflation did not yield, according to minutes from the central bank’s latest policy meeting published Wednesday (2/18).

The minutes from the Federal Open Market Committee January 28 meeting showed little clarity among decision makers on what to do with rates, as price growth remains above the central bank’s 2% annual target almost five years after the pandemic-driven surge.

“Several participants indicated that they would have supported a two-sided description of the Committee’s future interest rate decisions,” the Fed said in the published minutes. This reflects “the possibility that upward adjustments to the target range (of) the federal funds rate could be appropriate if inflation remains at above-target levels,” the minutes stated.

Interest rates have been in a 3.5%-3.75% range since the Fed left them unchanged in January. Prior to that, the central bank carried out three cuts of 25 basis points each from September to December, bringing rates down from a 4.25-4.5% range.

A return to rate hikes could strengthen the dollar, making crude and other energy products denominated in the U.S. currency more expensive for international buyers.

U.S. inflation has remained above 2% for 59 consecutive months since first breaching that threshold in March 2021. While price growth has retreated from the 9.1% reached in June 2022 during the pandemic period, it remains above the Fed’s annual target.

Flare at Marathon Catlettsburg Refinery After Power Outage

Marathon Petroleum’s Catlettsburg Refining has reported a flaring at its 300,000 bpd facility in Boyd County, Kentucky, on February 16 that it said was triggered by power outage.

In a filing with the Kentucky Energy and Environment Cabinet, the refinery said response teams were addressing the situation as quickly and safely as possible.

“As a result of a third-party power interruption, operating conditions at the Catlettsburg refinery made flaring necessary,” it said in a statement of the incident, filed as a Service-Repair & Maintenance issue.

Information was not immediately available on the impact to operations or unit throughput from the flaring. An email from DTN to Marathon seeking comment was not returned.

Catlettsburg produces mainly gasoline, distillates and heavy fuel oil, serving markets across the Midwest and Ohio Valley region.

EIA: U.S. Retail Diesel Climbs 2.3cts on Week

The U.S. Energy Information Administration reported Wednesday (2/18) that retail diesel prices rose 2.3cts during the week to February 16 to average $3.711 gallon, while climbing 3.4cts on the year.

Diesel prices have continued their rally from the weather-driven demand of late January, broadening gains across several regions through mid-February.

East Coast diesel prices rose 0.7cts to $3.763 gallon. For the year, this PADD 1 region showed a 2.8cts decline.

New England diesel prices slid 2.1cts to $4.215 gallon while climbing 19.4cts on the year.

In the latest week, the biggest diesel weekly appreciation was in the Rocky Mountain area. This PADD 4 region had a 6.8cts rise on the week and 9.7cts climb on the year to average at $3.607 gallon.

Diesel prices in the Central Atlantic (PADD 1B) region witnessed a 0.9cts rise on the week and 5.0cts climb on the year to average at $4.03 gallon.

In the Lower Atlantic area, diesel was at $3.612 gallon. The PADD 1C region was up 0.7cts on the week while remaining 8.4cts below levels from the prior year.

In the Midwest (PADD 2) region, diesel prices rose 2.8cts on the week and 6.2cts on the year to average at $3.664 gallon.

In the Gulf Coast, diesel increased 3.5cts on the week to $3.412 gallon. For the year, this PADD 3 region climbed 3.0cts.

West Coast diesel saw a 0.7cts increase on the week to $4.383 gallon. For the year, the PADD 5 witnessed a surge of 6.7cts.

West Coast less California diesel edged up 0.1cts on a weekly basis to $3.97 gallon, while climbing 10.7cts on the year.

California diesel itself rose 1.5cts on the week and 2.1cts on the year to $4.86 gallon.

EIA: U.S. Retail Gasoline Rises 2.2cts on Week

The national average for retail regular gasoline moved higher in the week ended February 16, with increases seen across most major regions, data from the U.S. Energy Information Administration showed Wednesday (2/18).

The U.S. average for regular gasoline increased by 2.2cts to $2.924 gallon last week, standing 22.4cts lower compared to the same week last year, the EIA’s weekly update on fuel pricing showed.

East Coast (PADD 1) gasoline increased by 1.1cts to $2.833 gallon in the reference week, while staying 19.1cts lower than the same period the previous year.

Within the East Coast, New England (PADD 1A) slipped by 0.1cts to $2.835 gallon week over week, standing 17.3cts below the same week a year ago.

Central Atlantic (PADD 1B) gasoline prices rose by 1.8cts on a weekly basis to reach $2.967 gallon last week, 20.0cts lower than the same week of last year.

Lower Atlantic (PADD 1C) gasoline prices climbed by 1.1cts to $2.748 gallon in the profiled week, 18.8cts lower than year-ago levels.

Midwest (PADD 2) prices fell by 0.5cts to $2.683 gallon last week, 29.9cts down compared to the same period of the prior year.

Prices for the same product at the Gulf Coast (PADD 3) rose slightly by 0.6cts to $2.482 gallon, 25.8cts lower than last year.

Rocky Mountain (PADD 4) gasoline climbed by 6.8cts to $2.737 gallon, remaining 30.9cts below year-ago levels.

West Coast (PADD 5) gasoline prices rose 10.7cts to $4.045 gallon, 14.2cts lower than the corresponding week last year.

Gasoline prices at West Coast less California surged by 11.1cts to $3.608 gallon, though they were 12.1cts weaker year on year.