MARKETWIRE ALERTS

MARKETWIRE ALERTS 

MarketWire Afternoon News May 12th:

Updated at 5:00 PM ET 

HEADLINES:

— API: Crude Stocks DN 2.2M Bbl; Distillates DN, Gasoline Up

— Suncor Commerce City Refinery Starts Up After Outage

— LA Diesel Basis Loses 10cts

— Midwest ULSD Basis Swings on Talk of Refiner Selling

— ExxonMobil Baytown Refinery Reports FCCU Emissions Event

— EIA: STEO Eyes Brent at $95 bbl, WTI $85.33 bbl in 2026

— Midwest ULSD Premiums Talked at $0.9750 vs NYMEX

— EIA: Henry Hub Spot Price Seen 5% Below April STEO

— EIA: U.S. Retail Gasoline Up 4.8cts on Wk to $4.50 Gallon

— EIA: U.S. Diesel Down 0.1cts on Week at $5.639 Gallon

— PBF Delaware City Refinery Begins Extended SO2 Release

— BLS: US CPI Jumps to 3-Year High of 3.8% in April

NEWS:

API: Crude Stocks DN 2.2M Bbl; Distillates DN, Gasoline Up

SECAUCUS, NJ (DTN) – The American Petroleum Institute (API) cited a 2.188-million bbl decline in commercial crude stocks for the week ended May 8, adding to the prior weekly decline of 8.14 million bbl, energy market participants who saw the latest API data told DTN on Tuesday (5/12).

The precise stock level for crude at the Cushing, Oklahoma delivery point for NYMEX WTI futures was not immediately known. In the prior week to May 1, Cushing saw a deficit of 1.0 million bbl.

Distillate fuel supply fell by 319,000 bbl, deepening the previous week’s decline of 4.6 million bbl.

Gasoline was the only component of the API data to witness a stockpile build, with inventories rising 502,000 bbl last week, after a 6.1-million bbl slide the week before.

Suncor Commerce City Refinery Starts Up After Outage

Suncor Energy reported an unplanned operational shutdown at its 98,000 bpd refinery in Commerce City, Colorado, following a third-party power outage on Sunday (5/11), according to a community notification issued by the company.

Suncor said refinery units were undergoing startup activities following the outage and that increased smoke or flaring could be visible from the facility during the restart process.

Commerce City and North Denver community air monitoring network, along with the refinery’s fenceline monitoring system, had not detected air quality readings above applicable health thresholds, according to the filing.

The refinery is the only petroleum refinery in Colorado and primarily produces gasoline, diesel, and asphalt, with roughly 95% of its products remaining within the state.

The latest event follows a similar notification issued by Suncor on May 8, when the company warned that increased smoke and flaring could be visible during startup activities tied to maintenance work.

DTN contacted Suncor for further comment, but the company did not immediately respond. 

LA Diesel Basis Loses 10cts

Los Angeles diesel basis weakened Tuesday (5/12), falling by 10cts to rest at a 20cts premium over June NYMEX ULSD futures, based on a confirmed trade.
The decline follows recent volatility in the Los Angeles middle distillate market, where diesel had last been seen near a 30cts premium.
Distillate fuel oil inventories in the U.S. West Coast (PADD 5) were unchanged at 10.1 million bbl in the week ending May 1 but were 1 million bbl lower than the same period last year, data from the U.S. Energy Information Administration (EIA) showed.

Distillate imports fell by 15,000 bpd to 10,000 bpd during the week profiled and were 3,000 bpd lower than levels reported a year earlier, according to the EIA.

Midwest ULSD Basis Swings on Talk of Refiner Selling

Chicago ultra-low sulfur diesel (ULSD) erased 85cts from its premium to trade at just 5cts gallon above NYMEX June ULSD on Tuesday (5/12) on talk that refiners were clearing inventory after holding to them in recent days following federal data indicating lower stockpiles.

On the Wolverine pipeline, the basis for ULSD dropped by 80cts to stand at 10cts gallon to the NYMEX front-month contract. The Buckeye Complex’s ULSD differential fell by 70cts to also rest at 10cts gallon to June ULSD.

The sharp swings in Midwest premiums came days after they reached all-time highs on a feared supply squeeze in diesel following lower regional stockpiles for ULSD reported by the U.S. Energy Information Administration (EIA). Earlier on Tuesday, Chicago ULSD was at a premium of 97.5cts gallon.

“Refiners are probably selling inventory now that they haven’t sold in a while,” said a regional trader in ULSD.

The EIA reported on Wednesday (5/6) that distillate fuel oil inventories in the Midwest dropped by 1 million bbl to 24.9 million bbl during the week ended May 1.

Despite the weekly decline, PADD 2 distillate balances remained slightly above the 24.7 million bbl reported in the same week of the previous year, the EIA data showed.

The basis for Group 3 jet fuel, meanwhile, fell 7cts on the day to stand at a discount of 7cts gallon to NYMEX ULSD for June.

Jet fuel inventories in the Midwest increased by 100,000 bbl to 7.2 million bbl and were above the 6.7 million bbl recorded in the same week last year.

ExxonMobil Baytown Refinery Reports FCCU Emissions Event

Exxon Mobil Corporation reported an emissions event at its 588,000 bpd Baytown Refinery in Baytown, according to a filing with the Texas Commission on Environmental Quality.

The event began Sunday (5/11) at 12:45 p.m. and is expected to continue through Wednesday (5/13) at 12:45 a.m. CT, for a total duration of about 72 hours.

According to the filing, a leak on the inlet duct of Reactor 501A at Fluidized Catalytic Cracking Unit 3 resulted in sulfur dioxide emissions to the atmosphere. ExxonMobil estimated sulfur dioxide emissions at 500 pounds.

The company said refinery personnel are following unit procedures to isolate the leak and that fenceline monitoring conducted as a precaution indicated no adverse environmental impact to the refinery or surrounding community. ExxonMobil also said it expects to meet contractual commitments.

The Baytown refinery is the fifth-largest refinery in the United States and primarily produces gasoline, diesel, and jet fuel.

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

EIA: STEO Eyes Brent at $95 bbl, WTI $85.33 bbl in 2026

The Energy Information Administration (EIA) has pared slightly its Brent and WTI price outlook for 2026 due to the likelihood of higher OPEC production, the agency’s Short-Term Energy Outlook (STEO) for May, released Tuesday (5/12), showed.

The EIA forecasts the 2026 average for Brent at $95 bbl versus the $95.67 bbl expectation it had in its April STEO. In 2025, Brent averaged $69 bbl.

For WTI, the EIA’s projection for 2026 was at $ 85.33 bbl, versus its $87.08 expectation in April.

“We now expect OPEC’s spare capacity to average 2.5 million b/d in 2027, compared with our previous forecast of 3.8 million b/d,” the EIA said in the May STEO report. “As oil production in the Middle East rises, we expect crude oil prices to fall.”

The EIA said it arrived at the May STEO numbers after incorporating the UAE’s departure from OPEC and by excluding their production data from all historical and forecast periods within the current outlook.

OPEC’s spare crude oil capacity is now expected to average 2.5 million bpd in 2027, down from previous forecasts of 3.8 million bpd following the move, the agency added.

Midwest ULSD Premiums Talked at $0.9750 vs NYMEX

The basis for ultra-low sulfur diesel (ULSD) climbed across the Midwest on Tuesday (5/12) to stand at a common premium of 97.5cts gallon over NYMEX ULSD for June, extending their recent higher trend amid concerns of tightening supply.

ULSD basis for Chicago and the Wolverine pipeline system climbed 7.5cts each on the day, while the differential for the Buckeye Storage Complex alone jumped 17.5cts from the prior session, according to data from traders monitoring the moves.

For Chicago ULSD, it was the highest premium, overwriting the previous peak of 78.5cts gallon on May 1. For  Buckeye and Wolverine, the prior peak was 83cts gallon, also seen on May 1.  

Buyers have been paying large premiums since last week for Midwest ULSD on fears of a near-term squeeze in diesel supply after U.S. Energy Information Administration (EIA) data showed a weekly drop in stockpiles.

The basis for Group 3 jet fuel, meanwhile, rose by a minus 3cts on the day to stand at a discount of 10cts gallon over NYMEX ULSD for June as demand for that product weakened versus diesel.

The EIA reported on Wednesday (5/6) that distillate fuel oil inventories in the Midwest dropped by 1 million bbl to 24.9 million bbl during the week ended May 1.

Despite the weekly decline, PADD 2 distillate balances remained slightly above the 24.7 million bbl reported in the same week of the previous year, the EIA data showed.

The basis for Group 3 jet fuel, meanwhile, rose by a minus 3cts on the day to stand at a discount of 10cts gallon over NYMEX ULSD for June as demand for that product weakened versus diesel.

Jet fuel inventories in the Midwest increased by 100,000 bbl to 7.2 million bbl and were above the 6.7 million bbl recorded in the same week last year.

EIA: Henry Hub Spot Price Seen 5% Below April STEO

The Energy Information Administration (EIA) has lowered its U.S. natural gas price outlook for this year as stronger production growth and higher storage levels continue to weigh on prices, the agency’s latest Short Term Energy Outlook (STEO) released Tuesday (5/12) showed.
The Henry Hub spot price is forecast to average $3.50/MMBtu in 2026, according to the EIA’s STEO for May. That was about 5% lower than the $3.67/MMBtu it forecast in its April STEO, and also below the $3.53/MMBtu that natural gas averaged in 2025.  
The downward revision reflects rising marketed natural gas production and stronger storage injections as higher crude oil prices support associated gas output from oil-focused drilling regions, particularly in the Permian Basin.  
For 2027, the EIA expects Henry Hub prices to average about $3.18/MMBtu, nearly 12% lower than last month’s outlook of $3.59/MMBtu.  
The EIA said marketed natural gas production is expected to average 121.8 Bcf/d in 2026 and 126.8 Bcf/d in 2027, representing increases of 1% and 2.1%, respectively, from the prior month’s forecast.  
The agency estimates U.S. working natural gas inventories ended March at 1,908 Bcf, roughly 4% above the five year average, after storage levels recovered despite heavier winter withdrawals earlier in the season.  
With higher production, the EIA expects natural gas injections during the April through October injection season to remain above average, with inventories projected to finish October at 7% above the prior five year average.  
The report also noted that U.S. LNG export capacity expanded by about 0.9 Bcf/d in April following the startup of Golden Pass LNG Train 1 and additional output from Corpus Christi Stage 3. Still, the EIA said near-maximum export utilization rates are likely to limit the ability of U.S. LNG facilities to significantly increase shipments in the near term.

EIA: U.S. Retail Gasoline Up 4.8cts on Wk to $4.50 Gallon

The national average for retail regular gasoline increased in the week ended May 11, with gains reported across all major regions, data from the U.S. Energy Information Administration showed Tuesday (5/12).
The U.S. average for regular gasoline climbed by 4.8cts to $4.500 gallon last week, standing $1.380 higher compared to the same week last year, the EIA’s weekly update on fuel pricing showed.
East Coast (PADD 1) gasoline increased by 8.5cts to $4.336 gallon in the week ended May 11, while standing $1.389 higher than the same period last year.
Within the East Coast, New England (PADD 1A) gasoline prices climbed by 10cts to $4.478 gallon week-over-week, standing $1.525 above the same week of 2025.
Central Atlantic (PADD 1B) gasoline prices grew by 11.4cts on a weekly basis to reach $4.534 gallon last week, and were $1.444 higher than the same week last year.
Lower Atlantic (PADD 1C) gasoline prices climbed by 6.3cts to $4.176 gallon in the profiled week, and stood  $1.320 higher than year-ago levels.
Midwest (PADD 2) prices increased by 0.6cts to $4.405 gallon last week, while standing $1.427 higher compared to the same period last year.
Prices for the same product at the Gulf Coast (PADD 3) climbed by 5.1cts to $3.953 gallon, $1.261 higher than last year.
Rocky Mountain (PADD 4) gasoline increased by 1.3cts to $4.372 gallon, and were $1.235 higher year-over-year.
West Coast (PADD 5) gasoline prices climbed by 3cts to $5.613 gallon, while standing $1.389 above the corresponding week last year.
Gasoline prices at West Coast less California spiked by 5.4cts to $5.189 gallon, while remaining $1.429 higher year-on-year.

EIA: U.S. Diesel Down 0.1cts on Week at $5.639 Gallon

The U.S. Energy Information Administration reported Tuesday that retail diesel prices remained nearly flat during the week ended May 11, with the national average easing 0.1ct to $5.639 gallon.

Compared with the same time last year, diesel nationwide was up $2.163 gallon on average.

East Coast diesel prices fell 3.9cts to $5.465 gallon for the week ended May 11. This PADD 1 region showed a $1.931 gallon increase compared with the same period last year.

New England diesel prices decreased 1.4cts to $5.849 gallon. This PADD 1A region climbed $1.972 versus the same period last year.

The Central Atlantic witnessed a 1ct decrease on the week. Prices in the PADD 1B region averaged $5.863 gallon, rising $2.086 compared with the previous year.

Diesel prices in the Lower Atlantic averaged $5.278 gallon. This PADD 1C region reflects a 5.3cts decrease on the week and a $1.87 gallon rise from the same time last year.

In the Midwest, diesel prices rose 7.3cts on the week. The PADD 2 region averaged $5.815 gallon, which was $2.399 gallon higher than levels seen at the same time last year.

On the Gulf Coast, diesel fell 2.6cts on the week to $5.152 gallon. Compared with the prior year, prices in PADD 3 were up $2.009 gallon.

Rocky Mountain diesel saw a 2.6cts decrease on the week to $5.491 gallon. The PADD 4 region posted a $2.028 gallon increase year-over-year.

West Coast diesel prices fell 6.9cts on the week to average $6.562 gallon. Compared with the previous year, the PADD 5 region was up $2.351 gallon.

West Coast less California diesel dropped 9.5cts on a weekly basis to $5.905 gallon. This represented a $2.17 gallon increase from the same time last year.

California diesel itself fell 3.9cts on the week to $7.321 gallon. Prices in the state remain the highest in the nation, sitting at $2.561 gallon above levels seen at the same time last year.

PBF Delaware City Refinery Begins Extended SO2 Release

PBF Energy said its 180,000 bpd Delaware City Refinery in Delaware City has begun repairs on equipment tied to the refinery’s coker carbon monoxide boiler, resulting in elevated sulfur dioxide emissions expected to last about four weeks, according to information released by the Delaware Department of Natural Resources and Environmental Control.

According to the notice, the refinery shifted from its primary pollution control process to a secondary emissions control system while repairs are completed, resulting in significantly higher sulfur dioxide emissions than normal. DNREC said the emissions are expected to exceed permit limits and could result in violations and penalties.

DNREC said it will closely monitor sulfur dioxide levels through air monitoring stations near the refinery and continue updating the public as additional information becomes available.

The Delaware City refinery supplies around 70% of Delaware’s gasoline consumption and also produces jet fuel, heating oil, and ultra-low sulfur diesel.

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

BLS: US CPI Jumps to 3-Year High of 3.8% in April

U.S. headline inflation hit a three-year high in April as the Consumer Price Index (CPI) rose 3.8% year-on-year, driven by a persistent surge in energy costs linked to the Middle East conflict, data from the Bureau of Labor Statistics (BLS) showed Tuesday (5/12).

The reading surpassed market expectations for a 3.7% yearly increase and marked a significant jump from the annual 3.3% rate recorded in March.

Economists noted that the 3.8% growth represented the fastest annual pace of inflation since May 2023, reflecting a sharp departure from the 2.4% levels seen earlier this year.

Core inflation, which strips out volatile food and energy components, also gained momentum to reach 2.8% on an annual basis. This exceeded the 2.7% forecast and followed a 2.6% reading in March, marking the highest core level since September and complicating the outlook for Federal Reserve monetary policy.

The Fed remains focused on its long-term 2% inflation target, a goal that appears increasingly remote as geopolitical tensions disrupt global supply chains. Financial markets now expect the central bank to maintain current interest rates at the upcoming June 16-17 meeting, as persistent price pressures undermine the case for rate cuts.

The April data showed the energy index rose 3.8% over the month, accounting for nearly half of the total monthly increase. This was fueled by a 5.4% climb in gasoline prices as average pump costs reached $4.45 per gallon, while the broader energy index has spiked 17.9% over the past 12 months due to Middle East supply constraints.

Rising fuel costs have begun to pass through into other sectors, particularly transportation and logistics. Airline fares climbed 2.8% in April and are up 20.7% over the last year, as carriers struggle with higher jet fuel expenses at the start of the summer travel season.

Food prices also trended higher, rising 0.5% for the month following a flat reading in March. Grocery prices were led by a 1.8% gain in fruits and vegetables and a 1.3% increase in the index for meats, poultry, fish, and eggs, while the shelter index rose 0.6% in April.

In the wake of the accelerated inflation data, WTI crude oil for June delivery on NYMEX was up $3.25, or 3.3%, at $101.32 bbl. The U.S. dollar index rose 0.336 to 98.16 as traders weighed the likelihood of “higher-for-longer” interest rates.  The May CPI report is due on June 10.