MARKETWIRE ALERTS

MARKETWIRE ALERTS 

MarketWire Afternoon News April 28th:

Updated at 5:00 PM ET 

HEADLINES:

— LA Jet Fuel Basis Rebounds to 95cts

— BP Whiting Power Outage Disrupts Operations

— API: Crude Stocks DN 1.8M Bbl; Distillates, Gasoline Drop

— Midwest Basis Spikes After BP Whiting Outage

— Valero Port Arthur Refinery Reports Brief Flaring Event

— Trump Admin. Pays 3 Firms So Far to End U.S. Offshore Wind

— EIA: U.S. Diesel Down 5.2cts on Week

— FERC Finalizes 5-Year U.S. Oil Pipeline Rate Index

— EIA: U.S. Retail Gasoline Average Climbs 7.9cts on Week

— UAE to Leave OPEC on May 1 as ADNOC Seeks Output Boost

— BP Doubles Replacement Profit in Q1 2026

NEWS:

LA Jet Fuel Basis Rebounds to 95cts 

The basis for prompt Los Angeles jet fuel strengthened Tuesday (4/28) by 10cts to a 95cts premium above May NYMEX ULSD futures, signaling renewed firmness after a sharp pullback in the previous session from record highs.

Los Angeles jet fuel reached a historic $1.10 gallon premium last week, before shedding 25cts on Monday (4/27).

Tuesday’s partial rebound which brought jet fuel back towards triple-digit territory prompted traders to observe the structural supply tightness across the West Coast refining system that kept fuel prices broadly higher. The region’s fuel processing capacity is under strain from reduced flexibility and ongoing market uncertainty tied to refinery closures and maintenance activity.

The shutdown of Phillips 66’s 139,000 bpd Los Angeles refinery earlier this year, combined with the planned closure of Valero’s 145,000 bpd Benicia refinery later this month, has removed significant production from the West Coast regional system.

With peak summer travel looming, market participants expect jet fuel values to remain highly sensitive to further operational disruptions.

BP Whiting Power Outage Disrupts Operations

A brief power outage over the weekend disrupted operations at BP’s 440,0000 bpd Whiting Refinery, triggering shutdown of a processing unit and flaring activity at the largest refinery in the U.S. Midwest.

The incident occurred the night of April 26 and was attributed to a systems-related electrical issue, not operator actions, BP said in a statement, adding that power had been restored since, and operations were stable.

The disruption adds a new layer of uncertainty to operations at Whiting, a refinery that continues to operate amid an ongoing labor lockout involving union workers.

API: Crude Stocks DN 1.8M Bbl; Distillates, Gasoline Drop

The American Petroleum Institute (API) cited a 1.8-million bbl decline in commercial crude stocks for last week, adding to the prior weekly decline of 4.5 million bbl, energy market participants who saw the latest API data told DTN on Tuesday (4/28).

The Cushing, Oklahoma delivery point for NYMEX WTI futures, saw a deficit of 82,000 bbl during the week ended April 24, in line with the broader inventory slide in crude stocks.

Gasoline balances fell by 8.5 million bbl last week, after a 5.17-million bbl slide the week before.

Distillate fuel supply slumped by 2.6 million bbl, deepening the previous week’s decline of 4.46million bbl.

Midwest Basis Spikes After BP Whiting Outage

Midwest refined product basis surged Tuesday (4/28), with sharp increases across ULSD and gasoline markets, as supply concerns lifted prompt values after a weekend power outage at BP Whiting Refinery.

Chicago ULSD basis was assessed at a 48cts premium to May NYMEX ULSD futures, climbing 60.50cts on the session, with similar moves seen across the Buckeye Complex and Wolverine pipeline, according to DTN Energy data.

Chicago CBOB gasoline basis also moved higher, rising 18cts to a 25cts premium to NYMEX RBOB futures, while Buckeye and Wolverine gasoline basis increased by 17cts on the day.

In the Group 3 market, ULSD, commonly referred to as “X,” strengthened by 15cts to a 6cts discount, while jet fuel, known as “Q,” rose 14cts to a 30cts discount.

Over the weekend, BP’s 440,000-bpd Whiting refinery experienced a brief power outage that led to the shutdown of a processing unit and flaring activity.

“Although it’s not yet clear what the full impact will be, it’s already adding pressure to refined products,” a source familiar with Midwest trading said. “You’ve also got planned maintenance at the Marathon Robinson Refinery, which has been underway since mid-March, tightening supply further.”

In a statement, BP said the outage occurred the night of April 26 due to a systems-related power interruption and was not the result of operator actions. Power has since been restored and operations are stable, the company said.

Valero Port Arthur Refinery Reports Brief Flaring Event

Valero Energy Corporation, through Premcor Refining Group Inc., reported an unplanned flaring event at its 360,000 bpd Valero Port Arthur Refinery in Port Arthur, according to a filing with the Texas Commission on Environmental Quality.

The event occurred Monday (4/27) from 8:53 a.m. to 10:37 a.m. CT, lasting about 1 hour and 44 minutes.

The flaring was triggered by an upset at the Saturated Gas Recovery Unit tied to an offgas compressor, with material routed to multiple flares to minimize emissions. Sulfur dioxide emissions totaled about 2,879 pounds, with VOCs at roughly 443 pounds.

Operations personnel made adjustments to stabilize the unit and stop the flaring, according to the filing.

The Port Arthur refinery is one of the largest on the U.S. Gulf Coast and primarily produces gasoline, diesel, and jet fuel.

Trump Admin. Pays 3 Firms So Far to End U.S. Offshore Wind

The Trump administration announced Monday that three firms had accepted compensation to abandon offshore wind leases in the U.S., as Bluepoint Wind and Golden State Wind joined TotalEnergies in receiving money in lieu of the developments.

The three firms agreed instead to pursue fossil fuel projects that the Trump administration had prioritized for its energy agenda.

“Now that hardworking Americans are no longer footing the bill for expensive, unreliable, intermittent energy projects, companies are once again investing in affordable, reliable, secure energy infrastructure,” Interior Secretary Doug Burgum said in a statement.

Bluepoint Wind and Golden State Wind will receive abandon U.S. offshore wind leases in exchange for $900 million. The payout to TotalEnergies was $1 billion.

In December, the Trump administration announced that leases for all large-scale U.S. offshore wind projects now under construction will be paused immediately for “security” reasons – a decision that impacted at least five such projects.

EIA: U.S. Diesel Down 5.2cts on Week

The U.S. Energy Information Administration reported Tuesday (4/28) that retail diesel prices declined for a third consecutive week, with the national average slipping 5.2cts during the week ended April 27 to average $5.351 gallon.

Compared with the same time last year, diesel nationwide was up $1.837 gallon on average.

East Coast diesel prices fell 6.9cts to $5.425 gallon. Compared with the same time last year, this PADD 1 region showed a $1.840 gallon increase.

New England diesel prices declined 2.8cts to $5.834 gallon. This PADD 1A region climbed $1.926 versus the same period last year.

The Central Atlantic witnessed an 8.1cts decrease on the week. Prices in the PADD 1B region averaged $5.843 gallon, rising $2.037 compared with the previous year.

Diesel prices in the Lower Atlantic averaged $5.229 gallon. This PADD 1C region reflects a 6.8cts decrease on the week and a $1.759 gallon rise from the same time last year.

In the Midwest, diesel prices fell 3.4cts on the week. The PADD 2 region averaged $5.131 gallon, which was $1.675 gallon higher than levels seen a year earlier.

On the Gulf Coast, diesel dropped 5.7cts on the week to $5.012 gallon. Compared with the prior year, prices in PADD 3 were up $1.829 gallon.

Rocky Mountain diesel saw a 5.7cts increase on the week to $5.270 gallon. The PADD 4 region posted a $1.800 gallon increase versus the same time last year.

West Coast diesel prices fell 9.0cts on the week to average $6.530 gallon. Compared with the previous year, the PADD 5 region was up $2.306 gallon.

West Coast less California diesel dropped 8.4cts on a weekly basis to $5.926 gallon. This represented a $2.149 gallon increase from the same time last year.

California diesel itself slid 9.7cts on the week to $7.228 gallon. Prices in the state remain the highest in the nation, sitting at $2.488 gallon above levels seen at the same time last year.

FERC Finalizes 5-Year U.S. Oil Pipeline Rate Index

The Federal Energy Regulatory Commission (FERC) has announced a new oil pipeline rate index tied to a U.S. inflation marker that could lower the ceiling for transportation costs starting in July 2026.

The revised pipeline index level will be set at minus 0.55% to the Producer Price Index for Finished Goods, with the formula being PPI-FG – 0.55%, the FERC said in a news release Friday (4/24).

“This order should not raise gas prices at the pump, or the price of airfare for ordinary Americans,” FERC Chair Laura V. Swett said. “The reality is that pipeline transportation costs represent a tiny fraction of the total price of fuel from an end-use consumer’s perspective.”

Swett noted that the industry requires proper incentives to maintain the critical network used to deliver affordable gasoline and jet fuel and that the new index aims to reflect real industry cost changes.

FERC opted to trim the data set to the middle 80% of cost changes. This action follows a notice of proposed rulemaking originally issued in November 2025.

The rule will take effect 60 days after its publication in the Federal Register. Under this indexing, oil pipelines charge transportation rates up to these specific applicable rate ceilings.

The order also accounts for a 2020 policy change regarding the allowed rate of return on equity for oil pipelines. This adjustment helps protect shippers from excessive rates while ensuring fair returns.

The commission finalized the rule to ensure oil pipeline indexed rates remain just and reasonable through June 2031. This follows a standard review process that occurs every five years.

EIA: U.S. Retail Gasoline Average Climbs 7.9cts on Week

The national average for retail regular gasoline moved higher in the week ended April 27, with gains reported across all major regions, data from the U.S. Energy Information Administration showed Tuesday (4/28).
The U.S. average for regular gasoline increased by 7.9cts to $4.123 gallon last week, standing 99.0cts higher compared to the same week last year, the EIA’s weekly update on fuel pricing showed.
East Coast (PADD 1) gasoline grew by 7cts to $3.958 gallon in the week ended April 27, while standing 97.1cts higher than the same period last year.
Within the East Coast, New England (PADD 1A) spiked by 16.9cts to $4.087 gallon week-over-week, standing $1.139 higher than the same week of 2025.
Central Atlantic (PADD 1B) gasoline prices climbed by 10.6cts on a weekly basis to reach $4.131 gallon last week, $1.019 higher than the same week last year.
Lower Atlantic (PADD 1C) gasoline prices grew by 2.3cts to $3.817 gallon in the profiled week, 89.9cts higher than year-ago levels.
Midwest (PADD 2) prices rose 9.5cts to $3.884 gallon last week, 89.2cts higher compared to the same period last year.
Prices for the same product at the Gulf Coast (PADD 3) rose 5.8cts to $3.675 gallon, 98.9cts higher than last year.
Rocky Mountain (PADD 4) gasoline climbed 8.0cts to $4.016 gallon, 88.2cts higher year-over-year.
West Coast (PADD 5) gasoline prices increased 9.2cts to $5.412 gallon, $1.220 higher than the corresponding week last year.
Gasoline prices at West Coast less California rose 3.8cts to $4.967 gallon, while standing $1.210 higher year-on-year.

UAE to Leave OPEC on May 1 as ADNOC Seeks Output Boost

The United Arab Emirates on Tuesday (4/28) announced they will exit OPEC and OPEC+ on May 1.

A member since 1967, the country has over the past several years participated in joint production curtailments rather reluctantly given the growth potential of its fossil fuel industry. ADNOC, the UAE’s state-run oil company, plans to lift oil output above 5 million bpd by the end of next year.

The UAE and de-facto OPEC leader Saudi Arabia have been at loggerheads over market strategy behind closed doors for years, given the UAE being more interested in investing in a growing industry than in artificially curtailing output to support higher prices. Saudi-led initiatives like production ceilings have in the past capped growth in the UAE’s oil sector.

The timing of the announcement was likely carefully chosen to not rattle markets into a selloff. Most of the country’s oil exports have been shut in the Persian Gulf since the closure of the Strait of Hormuz in early March. Production is unlikely to significantly ramp up as long as flows remain constricted, meaning this decision will do little to alleviate the most severe oil supply disruption in history.

Crude oil from the UAE seldomly makes it to the U.S., which tends to import heavier, more sour grades from the region. Energy Information Administration data show the last shipment from the UAE, some 720,000 bbl, arriving in November 2025. Last year, oil flows from the UAE averaged 28,000 bpd, representing 5.7% of U.S. crude imports from the Persian Gulf and less than 0.5% of total U.S. crude imports.

BP Doubles Replacement Profit in Q1 2026

BP reported on Tuesday (04/28) an underlying replacement cost profit of $3.2 billion for the first quarter, more than double year-on-year, driven by outsized crude prices.

• The average realized price for natural gas under production was $5.05 per thousand cubic feet on the Henry Hub. In liquids, Brent averaged $81.13 bbl.
• Refining and trading operations reported $3.2 billion in underlying replacement cost profit before interest and tax for customers and products, compared to $677 million a year earlier. Refining availability was 96.3% in the first quarter versus 96.0% during the prior quarter. 
• BP’s oil production & operations segment reported an underlying replacement cost profit of $2.0 billion for Q1 2026. While production remained steady in key areas like the Gulf of America, the overall profit for this specific segment was down compared to the $2.9 billion reported in Q1 2025.