MARKETWIRE ALERTS

MARKETWIRE ALERTS 

MarketWire Afternoon News for May 11^th   

Updated at 5:30 PM ET 

HEADLINES:

— LA CARBOB Basis Falls by Over 20cts on Tight Supply

— Trump Administration Weighs Federal Gas Tax Cut

— EIA: U.S. Sets Record Energy Production in 2025

— Valero McKee Refinery Reports FCCU Opacity Event

— PBF’s Torrance Refinery Reports Planned Flaring Event

NEWS:

LA CARBOB Basis Falls by Over 20cts on Tight Supply

MIAMI, FL (DTN) – Basis values for California reformulated gasoline blendstock under California Air Resources Board fuel standards weakened sharply Monday (5/11) across both Los Angeles and San Francisco markets following recent elevated pricing tied to tight West Coast supply conditions.
Prompt Los Angeles CARBOB regular basis fell by 21cts to a 32cts premium against June NYMEX RBOB futures after trading at that level. Los Angeles CARBOB premium basis also moved lower on the day to a 52ct premium also down by 21cts with CARBOB regular.
In San Francisco, prompt CARBOB regular basis declined by 15cts to a 41cts premium against June NYMEX RBOB futures. The premium to San Francisco CARBOB moved in tandem, falling by 15cts to a 69cts premium.
Motor gasoline inventories in the PADD 5 region fell for the third consecutive week, declining by 200,000 bbl to 28.2 million bbl during the week ended May 1, after falling the prior week, the EIA’s Weekly Petroleum Status Report showed. Year-over-year, gasoline stocks in the region were higher by 1.5 million bbl.
Traders continue to monitor tightening West Coast refining capacity following the shutdown of Phillips 66 Los Angeles refinery earlier this year and the phased idling of Valero Benicia refinery, which have reduced gasoline production flexibility across the region.

Trump Administration Weighs Federal Gas Tax Cut

DAVENPORT, FL (DTN) — U.S. Energy Secretary Chris Wright said Sunday the Trump administration is considering multiple options to ease rising fuel costs as retail fuel prices climbed amid ongoing tensions tied to the Iran conflict.

Speaking on NBC News’ “Meet the Press,” Wright said the administration is “open to all ideas” aimed at lowering prices at the pump for U.S. consumers, including a temporary suspension of the federal gasoline tax.

“All measures that can be taken to lower the price at the pump and lower the prices for Americans, this administration is in support of,” Wright said during the interview.

The comments came as the U.S. retail gasoline prices nationwide climbed to $4.581 gallon in the week ended May 4, according to data from the U.S. Energy Information Administration, the highest level since the conflict involving Iran intensified earlier this year.

To cushion the impact of the U.S.-Iran war on U.S. fuel prices, some states have already implemented the tax cut.

Georgia Governor Brian Kemp announced in March the suspension of the state’s motor fuel excise from March 20 to May 19. Meanwhile, the Indiana Governor Mike Braun announced a 30-day suspension of the same tax in his state, later extending the measure through early June.

U.S. retail diesel prices have also climbed sharply in recent weeks to $5.403 gallon as global crude oil and refined product markets reacted to continued disruptions tied to the Strait of Hormuz, a key transit route for global crude oil and fuel exports.

Wright declined to predict whether national gasoline prices could rise to $5 gallon but said the administration remains focused on stabilizing energy markets and maintaining fuel supplies.

The Trump administration has recently increased pressure on Iran while weighing additional measures tied to maritime security and energy flows through the Strait of Hormuz, a chokepoint that handles a significant share of global oil exports.

EIA: U.S. Sets Record Energy Production in 2025

HOUSTON, TX (DTN) — Total energy production in the United States rose for the fourth consecutive year after reaching 107 quadrillion British thermal units  in 2025, a 3.4% increase year-over-year, according to the most recent Energy Information Administration’s Monthly Energy Review data.

Total output was driven by record-high production in natural gas, crude oil, natural gas plant liquids, and renewables.

Dry natural gas production rose to a record-high 39 trillion cubic feet last year, which was 4% higher than the output reported in 2024, primarily driven by the Appalachia, Permian, and Haynesville regions. The United States maintained its position as the largest natural gas producer in the world since 2011, according to the agency.

Crude oil production amounted to 13.6 million barrels per day during 2025, 3%, or 350,000 barrels per day, higher than the previous year. “Most of that growth occurred in the Permian region of western Texas and southeastern New Mexico. Crude oil accounted for 26% of domestic energy production,” the EIA said.

During 2025, production of NGPLs – hydrocarbons separated as liquids during natural gas processing – climbed 7% year-on-year  to a record 4 Tcf, representing 9% of domestic energy production.

Coal accounted for 10% of domestic energy production in 2025 as it rose to 533 million short tons, a 4% increase versus the prior year and after two years of declining production.

Valero McKee Refinery Reports FCCU Opacity Event

DAVENPORT, FL (DTN) – Valero reported an excess opacity event at its 200,000 bpd McKee Refinery in Sunray, Texas, affecting the fluid catalytic cracking unit (FCCU),  according to a filing with the Texas Commission on Environmental Quality.

The event began Thursday (5/8) at 3:18 a.m. and ended at 3:30 a.m. CT.

According to the filing, the event opacity occurred after the FCCU unite stack vented when accumulated catalyst material in the third stage separator underflow line became dislodged, causing catalyst fines to enter the flue gas stream and increase stack opacity above permitted levels.

Refinery personnel followed established procedures to minimize emissions and manage the event, according to the filing.

The McKee refinery primarily produces gasoline, diesel, and jet fuel.

DTN reached out to Valero for additional details but did not get an immediate response.

PBF’s Torrance Refinery Reports Planned Flaring Event

MIAMI, FL (DTN) – PBF Energy reported a planned flaring event at its 166,000 bpd Torrance, California refinery which began  Saturday (5/9) at 8:27 a.m. PT, according to a filing with the South Coast Air Quality Management District.
The filing listed the reason for the event as “startup/shut down” and estimated the flaring activity could continue through Saturday (5/16) at 11:59 p.m. PT.
The Torrance refinery has experienced multiple flaring events this year tied to both planned maintenance activity and operational disruptions. Earlier this year, the refinery reported several weekend flaring incidents, including emergency flaring events linked to mechanical and electrical malfunctions.
The latest filing comes as the California refining system remains under pressure following the shutdown of Phillips 66’s 139,000 bpd Los Angeles refinery and the ongoing idling of Valero’s 145,000 bpd Benicia refinery, tightening fuel supply conditions across the West Coast.