MARKETWIRE ALERTS

MARKETWIRE ALERTS 

MarketWire Afternoon News April 23rd:

Updated at 5:00 PM ET 

HEADLINES:

— LA CARBOB Regular Basis Surges by 6cts on High Demand

— Analysis: EIA Sees Petroleum Export Record on Hormuz Stall

— BTS: N. American Feb. Transborder Freight Down 0.7% on Yr

— EIA: US NatGas Storage Reports 93 Bcf Weekly Injection

— CEC: California Diesel Stocks Fall 266,000 Bbl on Week

— CEC: California Gasoline Stocks Rise 25,000 Bbl on Week

— U.S. Rack ULSD Up 17.5cts; Gasoline Rises 12.7cts

NEWS:

LA CARBOB Regular Basis Surges by 6cts on High Demand

Basis for reformulated gasoline California Air Resources Board fuel standards rallied Thursday (4/23) in Los Angeles from where it was last seen trading on Wednesday (4/22).

Prompt Los Angeles CARBOB regular basis climbed by 6cts to a 66cts premium to May NYMEX RBOB futures after a trade was confirmed at that level. Los Angeles CARBOB premium basis spiked in tandem by 6cts to an 86cts premium.

Refinery utilization in the West Coast slipped to 77% from 82.5% in the week ending April 17, according to EIA data.

Analysis: EIA Sees Petroleum Export Record on Hormuz Stall

Refined product exports from the United States soared to a record high last week as refiners and consumers worldwide scrambled to replace lost Middle Eastern supply, U.S. Energy Information Administration data showed Wednesday (4/22).

At 8.08 million bpd, product exports were at their highest in history, surpassing the previous record weekly pace set in late March by 174,000 bpd. Over the past four weeks, such exports averaged 7.77 million bpd – more than a million bpd, or 15.6%, above the average pace in the same period of last year.

The surge came on the back of soaring international demand for U.S. diesel, which has been on a steady rise since the U.S.-Israeli war on Iran led to a fifth of global petroleum liquid supply being cut off the market. The closure of the Strait of Hormuz not only affected some 5 million bpd of refined product flows mostly in the form of middle distillates, but also at least 12 million bpd of crude oil supply of Asian refiners, leading to cut runs and fuel export bans which further tightened the diesel market.

The Persian Gulf became a vital source of diesel imports for Europe since the EU embargo on Russian product imports in February 2023. East and Southeast Asia, meanwhile, relied on fuel produced from Middle Eastern crude and regional trade. The ongoing supply disruption and its ripple effects downstream opened wide arbitrage windows for refined product flows from the U.S. East and Gulf Coasts to Europe and Asia.

Total distillate exports from the U.S. have since mid-March rocketed from 1.05 million bpd to a five-month high 1.6 million bpd. Over the past four weeks, they clocked in at more than 1.54 million bpd, up 31.5% year-on-year and the fastest since August 2024 when they last breached the 1.5 million bpd mark. EIA data showed that exports have over the past month been above year-ago levels in every fuel category from gasoline (up 11% year-on-year) to so-called “other oils” (up 13.5%).

Combined with increased demand for U.S. crude oil, total petroleum exports last week posted a record high 12.88 million bpd, dwarfing the previously fastest weekly pace prior to current events by more than 1.5 million bpd. They have rocketed by close to 2 million bpd since mid-March and have averaged 12.19 million bpd in the last four weeks, up 14.4% year-on-year.

With the Strait of Hormuz now being subject to a double blockade by both the U.S. and Iran and future peace talks in limbo, an imminent resumption of flows from the Middle East remains unlikely. U.S. exports are in prime position to continue at this record-breaking pace, limited only by logistical constraints which are being tested in an unprecedented fashion.

BTS: N. American Feb. Transborder Freight Down 0.7% on Yr

North American transborder freight moved by all modes of transportation decreased 0.7% in February compared to the same month last year, the U.S. Bureau of Transportation Statistics said.
Total freight value for the month reached $130.8 billion, marking a narrower decline following a 5.5% year-over-year decrease reported in January, according to BTS records reported on Wednesday (4/22).

The February decrease reflected lower volumes in railways, pipelines, and water vessels, while air freight and truck trade showed growth despite the overall decline. Transborder freight between the U.S. and Canada fell 9.0% to $57.5 billion, while shipments between the U.S. and Mexico rose 7.1% to $73.2 billion for the month.

Trucks moved $87.2 billion worth of freight in February, a 0.7% increase from a year ago, while rail shipments dropped 7.3% to $14 billion during the same period.

Pipeline freight decreased 10.2% to $8.9 billion and vessel shipments fell 5% to $7.3 billion, while air freight value rose 25.2% to $6 billion compared to last year.

EIA: US NatGas Storage Reports 93 Bcf Weekly Injection

Energy Information Administration data released midmorning Thursday (4/23) show a 93 billion cubic feet injection into U.S. natural gas storage to 2.063 trillion cubic feet in the week ended April 17.

Natural gas in U.S. storage is 7.4% higher than last year and 7.1% above the five-year average of 1.926 Tcf.

Regionally, EIA reports the East registered a 26 Bcf injection to 309 Bcf, 5.1% more than a year ago and 5.2% lower than the five-year average.
Natural gas in storage in the Midwest increased 33 Bcf week-on-week to 404 Bcf, a 2.8% surplus compared to the same week a year ago and 4.7% lower than the five-year average.
Mountain region natural gas in storage decreased 8 Bcf, up 18.8% year-on-year to 59.1% above the five-year average.
South Central storage rose 40 Bcf to 879 Bcf, 4.1% more than in the same week last year and 1.7% above the five-year average.

CEC: California Diesel Stocks Fall 266,000 Bbl on Week

California Energy Commission data show statewide diesel inventories declined sharply in the week ending April 17, according to the agency’s Weekly Fuels Report released on Thursday (4/23).
Statewide CARB diesel and other diesel fuel stocks slipped by 266,000 bbl to 2.638 million bbl, and were 10% lower than last year.
Statewide diesel production dropped by 223,000 bbl to 1.334 million bbl, while production was 21% lower than last year’s levels.

CEC: California Gasoline Stocks Rise 25,000 Bbl on Week

California Energy Commission data show statewide gasoline inventories increased in the week ending April 17, according to the agency’s Weekly Fuels Report released on Thursday (4/23).

Statewide gasoline stocks, including CARB reformulated, non-California, and blending components, climbed by 25,000 bbl to 9.788 million bbl, and were 0.5% higher than last year.

Statewide gasoline production slipped by 15,000 bbl to 4.647 million bbl, while production was 20% lower than last year’s levels.

U.S. Rack ULSD Up 17.5cts; Gasoline Rises 12.7cts

Wholesale rack prices for ultra-low sulfur diesel (ULSD) and gasoline moved up a third consecutive day Thursday (4/23) as physical markets climbed while futures were mixed in choppy trading amid uncertainties in the Middle East conflict.

Nationwide ULSD rack prices averaged $4.0554 gallon, up 17.5cts from Wednesday’s $3.8804 gallon, according to DTN data. Conventional unleaded gasoline rack prices averaged $3.4569 gallon, up 12.67cts.

By 10:00 a.m. ET Thursday, front-month June ULSD on NYMEX declined 2.51cts to $3.9128 gallon, while June RBOB gasoline futures rose 0.0179cts to $3.3758 gallon. WTI crude for June delivery rose $1.24 to $94.20 bbl.

The futures market was mixed as participants sought clarity over the future of U.S.-Iran truce talks that could ease the largest oil supply disruption in history as the Strait of Hormuz – the main waterway for Middle East oil shipments – remained accessible to energy product carriers while the Iran war approached its eight week.

Additional support for rack prices came from weekly inventory data released Wednesday by the U.S. Energy Information Administration, which reported that gasoline stocks fell 4.6 million bbl and distillates 3.4 million bbl.

ULSD racks moved higher across all regions Thursday, with the largest increases in PADD 1 and PADD 3. East Coast ULSD rose 20.11cts to $4.0760 gallon, while Gulf Coast prices increased 19.57cts to $4.0272 gallon. Midwest values climbed 10.54cts to $3.8242 gallon, while West Coast ULSD rose 16.85cts to $4.8944 gallon, maintaining the strongest regional premium. Rocky Mountain prices posted the smallest increase, up 9.78cts to $4.2297 gallon.

Relative to the national ULSD rack average of $4.0554 gallon, PADD 5 held the widest premium at 83.90cts above the U.S. benchmark, followed by PADD 4 at 17.43cts above. PADD 1 traded slightly above the national average, while PADD 2 and PADD 3 remained at discounts of 23.12cts and 2.82cts, respectively.

On conventional unleaded gasoline racks, all regions moved higher Thursday. East Coast gasoline rose 13.78cts to $3.1741 gallon, while Midwest prices increased 12.14cts to $2.9326 gallon. Gulf Coast values climbed 12.34cts to $3.0811 gallon, while Rocky Mountain gasoline rose 8.97cts to $3.2960 gallon. West Coast prices increased 11.77cts to $4.1901 gallon, maintaining the only premium position.

Compared with the national gasoline average of $3.4569 gallon, PADD 5 remained the only region trading at a premium, at 73.32cts above the benchmark. All other regions held discounts, led by PADD 2 at 52.43cts below the national average, followed by PADD 3 at 37.58cts and PADD 1 at 28.28cts. PADD 4 traded slightly below the national benchmark.

Premium gasoline rack prices also moved higher across all regions, broadly in line with conventional gasoline. West Coast premiums remained elevated at $4.5819 gallon, while other regions posted steady increases.

The continued climb in rack prices reflects a physical market still catching up to earlier strength, even as futures pause after the recent rally. Supply concerns tied to constrained Middle East flows, along with stronger than expected inventory draws, continue to keep the tone firm across refined products.

Structure has also strengthened following the futures rollover, with RBOB backwardation widening to above 12cts and ULSD spreads expanded sharply. The front month contract, meanwhile, traded more than $2 above deferred contracts. That steep premium for prompt barrels highlights how tight near-term availability remains, with buyers still prioritizing immediate supply over forward positions.