MARKETWIRE ALERTS

MARKETWIRE ALERTS 

MarketWire Afternoon News for March 5^th   

Updated at 5:30 PM ET 

HEADLINES:

–NYH, Houston Jet Fuel Basis Jump 20cts on Active Trading

–LA and SF CARBOB Regular Basis Spike Over 15cts

–Midwest ULSD Basis Weakens as Futures Continue to Rally

–LA Jet Fuel Basis Eases to 55cts After Market Rally

–BTS: January U.S. Airline Fuel Costs Drop from Dec.

–Chicago Fed: Economic Activity Edges Up in 7th District

— CEC: California Gasoline Stocks Fall 210,000 Bbl on Week

— EIA: 2025 U.S. Electricity Generation Hits All-Time Record

— CEC: California Diesel Stocks Fall 288,000 Bbl on Week

— NCR Voyix, Pilot Ink 5-Year Deal to Revamp Travel Centers

— U.S. Rack ULSD Prices Extend Rally for Fourth Straight Day

— Motiva’s Port Arthur, TX, Chemicals Plant Reports Flaring

NEWS:

NYH, Houston Jet Fuel Basis Jump 20cts on Active Trading

Jet fuel basis in the New York Harbor and Houston spot markets continued its upward trend on Thursday (3/5), rising over 20 cents on the day, tracking a 10% rise on underlying ultra-low sulfur diesel (ULSD) futures contract for April delivery.

The hike was supported by active trading and a wider bid-offer spread and after crude benchmarks hit a 20-month high on the day tied with the Iran war extension outlook.

Basis for jet fuel on the Buckeye Pipeline in the New York Harbor climbed by 21cts to a 50cts premium to April NYMEX ULSD futures contract, based on a trade reported done at that level.

At the Houston origin of the Colonial Pipeline, jet fuel traded at a 42.50cts premium to the April futures contract, a 22.50cts increase from the previous session, based on bids talked at 40cts basis and offers at 65cts basis.

The stronger basis was also supported by the Spring refinery maintenance season ahead of the summer driving season’s high demand.

LA and SF CARBOB Regular Basis Spike Over 15cts

Basis for reformulated gasoline California Air Resources Board fuel standards surged Thursday (3/5) in both Los Angeles and San Francisco gasoline amid limited supplies and a rally on underlying RBOB futures contract in the New York Stock Exchange (NYMEX).
Los Angeles CARBOB regular basis increased by 16cts to a 45cts premium to April NYMEX RBOB futures after a trade was reported at that level. San Francisco CARBOB regular basis rose in tandem by 21cts to a 49cts premium.

Gasoline inventories in PADD 5 fell by 1.1 million bbl to 28.7 million bbl in the week ending February 27, below the 28.8 million bbl reported in the same week last year, according to the most recent Energy Information Administration data. This was  the lowest level since the week ended December 5, when stocks were reported at 28.4 million bbl. Gasoline imports dropped to 22,000 bpd from 168,000 bpd the previous week, compared to120,000 bpd reported in the corresponding week of 2025, the same EIA data showed.

The uptick in gasoline differentials in Los Angeles and San Francisco come as refinery capacity tightens with the closure of Phillips 139,000 bpd Los Angeles, California, refinery and the upcoming shutdown of Valero’s 145,000 bpd, Benicia California, refinery, with operations scheduled to shut later in April.

Midwest ULSD Basis Weakens as Futures Continue to Rally

Midwest ultra-low sulfur diesel (ULSD) basis weakened Thursday (3/5) as regional cash markets adjusted to sharply higher futures prices, with the April NYMEX ULSD contract climbing more than 50cts gallon amid geopolitical risk tied to Iran and concerns over potential disruption to crude flows through the Strait of Hormuz.

Chicago ULSD basis weakened 7cts on the session to a 22cts discount to April NYMEX ULSD futures, while Group 3 ULSD dropped by 6cts to a 47cts discount. Meanwhile, the same product moved at the Buckeye Complex and the Wolverine pipeline dropped by 11cts to a 22cts discount, according to DTN data.

“This move is mostly futures outpacing demand,” a source familiar with the Midwest market said. “The physical market hasn’t tightened enough to justify the flat price yet, so basis is adjusting lower while buyers step back.”

The widening discounts reflect futures advancing more aggressively than physical demand rather than a sudden deterioration in Midwest supply fundamentals. When flat price rises rapidly, rack and spot markets often widen discounts as buyers hesitate at elevated replacement costs and spot liquidity temporarily slows. 

On Thursday, the national average ULSD rack price was at $3.3996 gallon, up 13.99cts from the prior session, DTN data showed

PADD 2 remains insulated from direct crude supply disruptions given its reliance on Canadian and domestic pipeline flows. However, sustained strength in Gulf Coast values tied to export demand could eventually lend support to inland pricing if tighter Atlantic Basin distillate balances begin pulling barrels toward coastal markets.

LA Jet Fuel Basis Eases to 55cts After Market Rally

Basis for prompt Los Angeles jet fuel fell by 10cts Thursday (3/5) to a 55ct premium above April NYMEX ULSD futures after surging to a 65ct premium in the previous session.

The pullback follows a sharp upward trend that began March 3, when LA jet fuel basis climbed by 26.5cts to a 42.5cts premium over the ULSD contract before jumping another 22.5cts on Wednesday (3/4).

Domestic supply tightness also supported spot market prices as refining utilization in the West Coast region decreased to 79.6% in the week ending February 27, down from 81.1% the previous week.

Lower refining rates in PADD 5 reflect the recent closure of Phillips 139,000 bpd Los Angeles, California, refinery and the upcoming shutdown of Valero’s 145,000 bpd, Benicia California, refinery, with operations set to cease in late April

Analysis: EIA Sees Jet Fuel Driving Oil Demand Growth

Total product supplied, a proxy for demand, fell 1.588 million bpd in the last week of February as all petroleum fuels but kerosene-type jet fuel registered declines, Energy Information Administration data showed Wednesday (3/4).

Finished motor gasoline supplied was in line with year-ago levels in February. On the daily cumulative average, gasoline supplied was down 0.2% year-on-year and distillate fuel oil supplied down 0.8% year-on-year in the week ending February 27, respectively. Jet fuel supplied, in contrast, increased 5.3% year-on-year, and over the last four weeks was 6.8% higher than in the same period in 2025.

While road fuel demand growth seems to have stalled, domestic demand for jet fuel continued to rise, and last year reached its highest since 2019. Despite grounded flights amid last year’s federal government shutdown, jet fuel supplied still registered a 2.2% growth to 1.69 million bpd in 2025, according to monthly EIA data.

Total air passenger-miles are still lagging pre-COVID levels, in contrast to vehicle miles traveled, which last year reached new record levels. Yet, the effects on petroleum fuel consumption were much more pronounced in the case of jet fuel. Engine efficiency gains, the continued electrification of the American car fleet and non-petroleum fuels and additives have eaten away at gasoline demand. Jet fuel barely has to contend with these factors. Jet engines are becoming more fuel efficient, but air fleets are slow to rejuvenate compared to road transportation. While demand for so-called sustainable aviation fuel (SAF), a non-petroleum derived renewable blend stock for jet fuel, has in recent years soared, it still accounts for less than 2% of total jet fuel consumption.

In contrast to demand for gasoline, EIA in its latest short-term energy outlook forecasted jet fuel demand to continue growing this year and next, albeit at a slower pace as commercial air travel last year registered the slowest growth rate since 2020.

Soaring prices, however, could upend these expectations. The closure of the Strait of Hormuz has catapulted kerosene spot prices in the U.S. to three-year highs as the U.S.-Israeli war against Iran entered its sixth day, and a prolonged supply-chain disruption may keep prices in a demand-destructing range.

BTS: January U.S. Airline Fuel Costs Drop from Dec.

U.S. airlines consumed 1.441 billion gallons of aviation fuel in January 2026, a 10.8% decline from December 2025, according to data released Thursday (3/5) by the Bureau of Transportation Statistics (BTS).

The sharp month-over-month drop is largely seasonal, reflecting the pullback in passenger travel following the busy holiday period, BTS stated.

Despite a slight uptick in fuel prices — rising to $2.36 gallon from $2.32 in December — total fuel expenditures fell 9.2% to $3.40 billion, down from $3.74 billion the previous month.

Year-over-year comparisons were more favorable for carriers. Compared to January 2025, fuel consumption edged down 1%, while the cost per gallon fell 2.7% from $2.42, translating to a 3.7% reduction in total spending.

Fuel remains one of the single largest operating costs for U.S. airlines, routinely accounting for 20% to 25% of total expenses. Even modest swings in price or consumption can have significant bottom-line implications across the industry.

The BTS data covers scheduled service only and reflects fuel paid for by the carrier. Figures are reported in current dollars and remain subject to revision.

Chicago Fed: Economic Activity Edges Up in 7th District

Economic activity in the Federal Reserve’s Seventh District, which includes Illinois, Indiana, Michigan, Wisconsin and Iowa, rose slightly in recent weeks, according to the February Beige Book released by the Federal Reserve Bank of Chicago on Wednesday (3/4).

Manufacturing demand increased modestly in January and early February, with steel sales rising slightly amid stronger demand tied to data center and energy infrastructure investment. Machinery sales also increased modestly while heavy truck production remained stable, the report said.

According to the same report, demand for truck transportation declined slightly during the reporting period, though one contact noted that reduced capacity from winter storms pushed freight rates higher. Business spending was flat overall, while capital expenditures increased slightly and contacts expected a modest rise in expenditures over the coming year.

In the agricultural sector, contacts said farm income in 2026 is expected to be similar to 2025. Producers continued to face high input costs, particularly fertilizers, while crop prices increased slightly overall as lower corn prices were offset by higher soybean and wheat prices.

Across the district, contacts reported moderate increases in producer prices, including higher costs for raw materials and energy, while wages and benefits costs also rose moderately.

EIA: US NatGas Storage Reports 132 Bcf Weekly Withdrawal

Energy Information Administration data released midmorning Thursday (3/5) show a 132 billion cubic feet withdrawal from U.S. natural gas storage to 1.886 trillion cubic feet in the week ended February 27.
Natural gas in U.S. storage is 6.5% higher than last year and 2.2% below the five-year average of 1.929 Tcf.
Regionally, EIA reports the East registered a 42 Bcf withdrawal to 322 Bcf, 6.1% less than a year ago and 17% lower than the five-year average.
Natural gas in storage in the Midwest decreased 44 Bcf week-on-week to 397 Bcf, a 0.8% deficit compared to the same week a year ago and 16.2% lower than the five-year average.
Mountain region natural gas in storage decreased 3 Bcf, up 19.3% year-on-year to 53.5% above the five-year average.
South Central storage fell 41 Bcf to 712 Bcf, 7.6% more than in the same week last year and 6.6% below the five-year average.

CEC: California Gasoline Stocks Fall 210,000 Bbl on Week

California Energy Commission data show statewide gasoline inventories declined in the week ending February 27, as the agency now reports only statewide totals in its Weekly Fuels Report released on Thursday (3/5).
Statewide gasoline stocks, including CARB reformulated, non-California, and blending components, slipped by 210,000 bbl to 9.843 million bbl and were 12% below the 11.183 million bbl reported for the same week the previous year.
Statewide gasoline production increased by 264,000 bbl to 4.817 million bbl, though production remained 15% below the 5.668 million bbl recorded in the corresponding week last year.
The California Energy Commission is currently publishing only statewide gasoline inventory and production data and is no longer providing regional Northern and Southern California breakdowns.

EIA: 2025 U.S. Electricity Generation Hits All-Time Record

The United States set an all-time electricity generation record in 2025, producing 4.43 terawatt-hours, a 2.8% increase over 2024, according to an Energy Information Administration report released Thursday (3/5).

This record  marks a sharp departure from the relatively flat generation trend seen between the mid-2000s and early 2020s, fueled largely by surging demand from data centers in the commercial sector and manufacturing growth in the industrial sector, the EIA stated.

U.S. retail electricity sales to end customers rose across all three sectors in 2025: residential (+10%), commercial (+4%), and industrial (+1%).

The EIA’s Short-Term Energy Outlook projects that electricity generation will continue to grow through 2026 and 2027, driven by sustained demand increases.

CEC: California Diesel Stocks Fall 288,000 Bbl on Week

California Energy Commission data show statewide diesel inventories declined in the week ending February 27, as the agency now reports only statewide totals in its Weekly Fuels Report released on Thursday (3/5).
Statewide CARB diesel and other diesel fuel stocks fell by 288,000 bbl to 2.671 million bbl and were 17% below the 3.216 million bbl reported for the same week last year.
Statewide diesel production slipped by 78,000 bbl to 1.547 million bbl still 5% above the 1.472 million bbl recorded in the corresponding week last year.
The California Energy Commission is currently publishing only statewide diesel inventory and production data and is no longer providing regional Northern and Southern California breakdowns.

NCR Voyix, Pilot Ink 5-Year Deal to Revamp Travel Centers

NCR Voyix and Pilot, North America’s largest travel center operator, have announced a five-year exclusive platform agreement that will modernize point-of-sale technology across more than 900 Pilot locations nationwide.

Under the expanded partnership, Pilot will deploy NCR Voyix’s cloud-native POS and Fuel solutions on the Voyix Commerce Platform — a modern microservices architecture built with AI-enabled capabilities. The deal marks a major milestone for the Voyix Commerce Platform as it accelerates adoption across the convenience and fuel retail sector.

The unified platform is designed to deliver consistent software delivery across locations, stronger edge security, greater operational resilience, and a faster path to continuous improvement — benefiting both store team members and the more than 1.2 million guests Pilot serves daily.

“We are excited to be leveraging this innovative platform to transform our point-of-sale operating environment for the future,” said Andy Lupo, Chief Technology Officer at Pilot.

U.S. Rack ULSD Prices Extend Rally for Fourth Straight Day

Wholesale rack prices for gasoline and diesel across the United States opened higher Thursday, extending the upward trend for a fourth consecutive session as supply concerns linked to escalating geopolitical tensions in the Middle East continued to support refined products markets.

Nationwide ultra-low sulfur diesel (ULSD) rack prices were at $3.3996 gallon, up 13.99cts from Wednesday’s $3.2597 gallon, according to DTN data.

Meanwhile, conventional unleaded gasoline rack prices were heard at an average of $2.5913 gallon, an increase of 1.81cts compared to Wednesday’s national average of $2.5732 gallon.

On gasoline racks, PADD 5 posted the largest increase, rising 5.97cts to $3.1325 gallon, followed by PADD 3, up 3.76cts to $2.2022 gallon. PADD 1 climbed 3.02cts to $2.2499 gallon, while PADD 2 increased 1.76cts to $2.1126 gallon and PADD 4 rose 1.19cts to $2.2460 gallon, the same data showed.

Compared to the national average of $2.5913 gallon, all regions traded at a discount except for PADD 5, which stood at a 54.12cts premium to the U.S. average. The widest discount was seen in PADD 2, at 47.87cts below the national benchmark, followed by PADD 3 at a 38.91cts discount, PADD 4 at 34.53cts below, and PADD 1 at 34.14cts below.

ULSD racks also moved higher across all five PADDs, with the sharpest increase seen in PADD 3, where ULSD rose 20.09cts to $3.3687 gallon, followed by PADD 1, up 17.09cts to $3.5472 gallon. PADD 5 climbed 14.16cts to $3.8643 gallon, while PADD 2 and PADD 4 increased 9.91cts and 5.69cts, respectively.

Relative to the national ULSD rack average of $3.3996 gallon, PADD 5 held the strongest premium at 46.47cts above the U.S. average, followed by PADD 1 at a 14.76cts premium. PADDs 3, 2 and 4 were at 3.09cts, 18.69cts and 39.45cts below the national average, in that order.

The front-month NYMEX ULSD futures contract for April delivery rose by $0.1530 to $3.4468 gallon, while the April NYMEX RBOB contract increased by $0.0826 to $2.5979 gallon, as futures markets continued to move higher during early Thursday trading.

Motiva’s Port Arthur, TX, Chemicals Plant Reports Flaring

Motiva Enterprises reported an initial air emission event following a process unit upset at its Port Arthur Chemicals facility, according to a filing to Texas Commission on Environmental Quality (TCEQ).

The upset began at approximately 7:30 a.m. on March 3 at the facility’s Light Olefins Unit (LOU). The event resulted in continuous flaring through the LOU Flare emission point for a duration of 24 hours, concluding at 7:30 a.m. on March 4. The petrochemical plant produces nearly 1 million metric tons of ethylene per year.

A total of 15 air contaminants were released during the event. The largest estimated quantities included carbon monoxide (3,000 lbs), ethylene (2,600 lbs), propylene (575 lbs), benzene (425 lbs), and nitrogen oxide (400 lbs). Additional compounds released included propane, 1,3-butadiene, isobutylene, toluene, butane, nitrogen dioxide, butylene, ethylbenzene, xylenes, and isobutane. All emissions exceeded their permitted limits of zero pounds.

Motiva Enterprises operates the Port Arthur Manufacturing Complex, one of the largest refining and petrochemical complexes in the United States. The incident remains under review by TCEQ.