MARKETWIRE ALERTS

MARKETWIRE ALERTS 

MarketWire Afternoon News May 13th:

Updated at 5:00 PM ET 

HEADLINES:

— LA Jet Fuel Basis Extends Weakness on Steady Stockpiles

— Midwest Gasoline Basis Down, Ignoring Stockpile Drop
— California Launches $1 Billion Electric Truck Rebate Plan

— IEA Slashes Oil Demand Forecast on Global Supply Shock

— Motiva Reports 5-Day Flaring at Port Arthur Chemicals Unit

— PADD 2 Gasoline Stocks Near 6-Month Low

— EIA: Crude Stocks Down as Gasoline Nears 6-Month Low

— EIA: PADD 3 Distillate Stocks Slip Near 3-Year Low

— EIA: PADD 5 Gasoline Stocks Rise for 2nd Week

— EIA: PADD 1 Distillate Stocks Bounce from 10-Month Low

— BLS: US PPI Jumps 1.4% in April on Energy Costs

— OPEC Cuts 2026 Outlook as Saudi Output Hits 1990 Low

NEWS:

Midwest Gasoline Basis Down, Ignoring Stockpile Drop

The basis for gasoline on the Buckeye Storage Complex, Wolverine pipeline and Chicago fell Wednesday (5/13) against NYMEX gasoline as volatility in Midwest fuel differentials offset federal data pointing to a weekly inventory drop.

At Buckeye, the gasoline basis weakened by 21.5cts to stand at a premium of 8.5cts gallon to the June gasoline contract on NYMEX.

On Wolverine, the gasoline differential fell by a more modest 11.5cts to 18.5cts gallon above the front-month gasoline futures contract.

In Chicago, the decline was even narrower, sliding 7.5cts to a rest at a premium of 8.5cts  gallon to June gasoline.

Midwest fuel differentials have been volatile over the past week as refiners initially held to inventories on concerns of a supply squeeze before relinquishing them, resulting in price swings, said traders familiar with the situation.

The market could see more gyration in the coming days after the U.S. Energy Information Administration (EIA) reported Wednesday that gasoline stockpiles in the Midwest fell for a fourth consecutive week last week to a near six-month low.

Motor gasoline inventories in PADD 2 fell by 600,000 bbl to 45.6 million bbl during the week ended May 8, the EIA data showed. This was below the 48.4 million bbl recorded in the same week of last year and the lowest since the week ended Nov. 28, 2025, when inventories stood at 44.9 million bbl.

California Launches $1 Billion Electric Truck Rebate Plan

The California Air Resources Board (CARB) announced Wednesday (5/13) the launch of the California Clean Fuel Reward (CCFR), a rebate program for electric medium- and heavy-duty trucks expected to become the largest utility-administered program of its kind in the country.

Funded through revenue generated by the state’s Low Carbon Fuel Standard (LCFS), the program makes $250 million available this year, with over $1 billion in total rebate funding projected through 2030, the CARB stated.

Beginning June 26, authorized retailers statewide will offer rebates ranging from $7,500 to $120,000 on new electric commercial vehicles, including drayage trucks, electric semis, box trucks, and delivery vans. Public fleets will also be eligible to purchase smaller Class 2b vehicles such as business-use pickup trucks.

CARB Chair Lauren Sanchez said the program returns LCFS revenue directly to truck buyers at the point of purchase, making zero-emission trucks a more competitive choice for fleets while improving air quality along freight corridors.

The program is administered by Southern California Edison on behalf of CARB and several utilities statewide. The announcement comes as zero-emission vehicles accounted for nearly 23% of new medium- and heavy-duty vehicle sales in California in 2024 — more than double the state’s target.

IEA Slashes Oil Demand Forecast on Global Supply Shock

Global oil demand is forecast to contract by 420,000 bpd year-on-year in 2026 to 104 million bpd, some 1.3 million bpd below projections made prior to the Middle East conflict, the International Energy Agency said Wednesday (5/13).

Global oil supply fell a further 1.8 million bpd in April to 95.1 million bpd, bringing cumulative losses since February to 12.8 million bpd, due to the war and the ongoing closure of the Strait of Hormuz, the IEA observed in its monthly report for May.

Gulf producers are now pumping 14.4 million bpd below pre-war levels. Assuming Strait flows gradually resume from June, the IEA projects full-year 2026 supply will average 102.2 million bpd — a decline of 3.9 million bpd.

The demand contraction is sharpest in the second quarter, with a 2.45 million bpd year-on-year drop, split between OECD nations at 930,000 bpd and non-OECD economies at 1.5 million bpd. Petrochemicals and aviation are currently the hardest-hit sectors, though the agency warned that higher prices, a weakening economic environment and demand-saving measures will increasingly weigh on broader fuel use.

Refinery crude throughputs are forecast to plunge 4.5 million bpd in the second quarter to 78.7 million bpd, and by 1.6 million bpd for 2026 as a whole to 82.3 million bpd. Despite the turmoil, refining margins remain at historically elevated levels, underpinned by record middle distillate cracks.

Global observed inventories drew by 129 million bbl in March and a further 117 million bbl in April. OECD on-land stocks alone fell 146 million bbl — equivalent to 4.9 million bpd — last month. North Sea dated oil swung across a near $50 bbl range in April, averaging $120.36/bbl, before plunging from a peak of $144 bbl to below $100 bbl and stabilizing near $110/bbl.

Motiva Reports 5-Day Flaring at Port Arthur Chemicals Unit

Motiva Enterprises has filed an initial air emission event report with the Texas Commission on Environmental Quality disclosing a significant release of pollutants tied to startup operations at its Port Arthur Chemicals located at its Port Arthur Manufacturing Complex.

The emissions began at 7:00 PM on Wednesday (5/13) and are expected to continue for five days — concluding Monday (5/18) as the company brings a new Light Olefins Unit (LOU) online at its Port Arthur Manufacturing Complex.

According to the filing, an estimated 34,650 pounds of air contaminants are projected to be released through the LOU Flare, including 16,000 lbs of propane, 8,000 lbs of propylene, 6,900 lbs of carbon monoxide, 3,500 lbs of nitrogen oxide, and 250 lbs of nitrogen dioxide.

Motiva stated that startup procedures will be followed to minimize the duration and volume of emissions.

PADD 2 Gasoline Stocks Near 6-Month Low

Midwest (PADD 2) gasoline inventories fell for the fourth consecutive week, falling to their lowest level since late-November, while distillate, jet fuel and crude oil stocks all moved lower too, according to data released by the U.S. Energy Information Administration (EIA) published Wednesday (5/6).

Motor gasoline inventories in PADD 2 fell by 600,000 bbl to 45.6 million bbl during the week ended May 8, the EIA data showed. This was below the 48.4 million bbl recorded in the same week last year and the lowest since the week ended Nov. 28, 2025, when inventories stood at 44.9 million bbl.

Total motor gasoline imports were zero, versus 1,000 bpd the prior week but below the 3,000 bpd imported in the comparable week of the prior year.

Distillate fuel oil inventories in PADD 2 dropped by 700,000 bbl on the week to 24.2 million bbl while remaining above the 23.8 million bbl reported in the same week of the previous year. Distillate fuel oil imports averaged 4,000 bpd, down from 12,000 bpd the prior week and the 14,000 bpd imported a year earlier.

Jet fuel inventories in the Midwest dipped by 200,000 bbl to 7 million bbl and were above the 7.1 million bbl recorded in the same week last year. During the profiled week, PADD 2 jet fuel imports remained at zero bpd, unchanged week-over-week and year-over-year.

Crude oil inventories in PADD 2 decreased by 90,000 bbl to 111.2 million bbl during the reference week but remained above the 107.3 million bbl recorded in the same week of the previous year. Crude oil imports into the Midwest averaged 2.88 million bpd during the reference week, compared with 2.78 million bpd the prior week and 2.92 million bpd reported in the same week of the prior year.

Refinery utilization in the Midwest rose to 88.8% of operable capacity from 86% the prior week, although that was lower than the 91.8% utilization rate reported for the same week of the prior year.

EIA: Crude Stocks Down as Gasoline Nears 6-Month Low

U.S. commercial crude oil inventories fell for a third straight week, and gasoline stockpiles dipped to a near six-month low, according to Energy Information Administration data for the week ended May 8 released Wednesday (5/13).

Distillate and jet fuel inventories, meanwhile, moved higher as refinery utilization climbed to the highest level since late summer.

Commercial crude oil inventories fell by 4.3 million bbl to 452.9 million bbl during the week profiled. The latest crude inventory balance was 11 million bbl, or 2.5%, above the same period last year.

Crude oil imports averaged 5.9 million bpd in the profiled week, up 420,000 bpd from the previous week. Over the last four weeks, crude imports averaged 5.8 million bpd, up 0.9% from the same period last year. Crude oil exports averaged 5.49 million bpd last week, up from 4.75 million bpd the week prior and well above the 3.37 million bpd reported a year earlier.

Distillate fuel inventories rose by 200,000 bbl to 102.5 million bbl during the reference week. Stocks were down 1.1 million bbl, or 1.1%, from the same week last year, remaining near record low levels.

Total motor gasoline inventories decreased by 4.1 million bbl to 215.7 million bbl, the lowest level since the week ended November 28, 2025, when inventories stood at 214.4 million bbl. On an annual basis, gasoline inventories were down 9 million bbl, or 4%.

Jet fuel inventories rose by 400,000 bbl to 44 million bbl last week and were 2.4 million bbl, or 5.7%, above year-ago levels.

Refinery utilization increased to 91.8% of operable capacity last week from 90.1% in the prior week. Crude oil inputs into refineries averaged 16.398 million bpd, higher than the previous week’s 16.029 million bpd.

Total products supplied over the last four weeks averaged 19.84 million bpd, up 1.1% from the same period last year. Gasoline demand averaged 9.01 million bpd, up 0.8% from year-ago levels, while distillate demand averaged 3.688 million bpd, down 1.3% from the previous year.

EIA: PADD 3 Distillate Stocks Slip Near 3-Year Low 

U.S. Gulf Coast (PADD 3) distillate fuel oil inventories declined during the week ended May 8, remaining near the lowest level in more than three years, while gasoline inventories fell, jet fuel balances increased, and crude oil stocks continued to move lower, according to data released Wednesday (5/13) by the U.S. Energy Information Administration.

PADD 3 distillate fuel oil inventories, the feedstock for diesel, declined by 300,000 bbl to 39 million bbl in the profiled week and were below the 42.4 million bbl recorded in the same week last year. Despite the decline, inventories remained slightly above the three-year low reached two weeks earlier, when stocks fell to 38 million bbl, the lowest level since the week ended March 17, 2023.

Jet fuel inventories in PADD 3 increased by 1.8 million bbl to 16 million bbl during the reference week and were above the 13.6 million bbl reported in the comparable week last year. As a net exporter of distillate and jet fuel, PADD 3 does not report imports of those products.

Motor gasoline inventories in PADD 3 declined by 700,000 bbl to 80.4 million bbl and were below the 84.1 million bbl reported in the same week last year. Motor gasoline imports into the Gulf Coast averaged 16,000 bpd last week, down by 70,000 bpd from the prior week, while no gasoline imports were recorded during the same week last year.

Crude oil stocks in PADD 3 declined by 900,000 bbl week-over-week to 263.2 million bbl and were above the 251.3 million bbl recorded in the same week of 2025. Imports into the Gulf Coast fell by 49,000 bpd to 1.134 million bpd and were above the 810,000 bpd recorded in the comparable week last year.

Refinery utilization on the Gulf Coast increased to 96.4% from 95.9% the previous week, while crude oil inputs increased by 130,000 bpd to 9.407 million bpd, EIA data showed.

EIA: PADD 5 Gasoline Stocks Rise for 2nd Week

U.S. West Coast gasoline inventories increased for the second consecutive week after recent declines, while distillate stocks also climbed in the week ending May 8, Energy Information Administration data showed Wednesday (5/13).
Motor gasoline inventories in the PADD 5 region increased by 100,000 bbl to 28.3 million bbl during the week ended May 8, after rising the prior week, the EIA’s Weekly Petroleum Status Report showed. Year-on-year, gasoline stocks in the region were 1.7 million bbl higher. PADD 5 gasoline imports fell by 131,000 bpd to 121,000 bpd last week and were 127,000 bpd lower compared with the same week last year.
Distillate fuel oil inventories in the same region climbed by 100,000 bbl to 10.2 million bbl during the week profiled but were 600,000 bbl lower than the volume reported in the same period last year, EIA data showed. Distillate imports slipped by 2,000 bpd to 8,000 bpd for the week and were 48,000 bpd lower than year ago levels.
Jet fuel stocks in the West Coast fell by 400,000 bbl to 10.6 million bbl and were unchanged from a year ago. Its imports increased by 22,000 bpd to 25,000 bpd last week but were 106,000 bpd lower than the same week last year.
Crude oil inventories in PADD 5 dropped by 1.4 million bbl to 45.3 million bbl during the week ending May 1 and were 5.2 million bbl lower compared with the same week in 2024. Crude imports in PADD 5 grew by 653,000 bpd to 1.212 million bpd on the week and were 103,000 bpd higher year-on-year.
Refinery utilization in the West Coast slipped from 81.8% to 79.9% in the week ending May 8, according to EIA data.

EIA: PADD 1 Distillate Stocks Bounce from 10-Month Low

East Coast (PADD 1) distillate fuel oil inventories increased in the week ended May 8 after falling to a 10-month low the previous week, while gasoline stocks declined sharply, jet fuel inventories moved lower, and crude oil inventories decreased, according to data released by the U.S. Energy Information Administration on Wednesday (5/13).

Distillate fuel oil inventories in PADD 1 increased by 1.2 million bbl to 25.8 million bbl in the respective week and were above the 22.6 million bbl recorded in the same period last year. Despite the increase, the latest level remained near the lowest inventories since the week ended July 11, 2025, when stocks stood at 23.6 million bbl. Distillate fuel oil imports averaged 192,000 bpd, up by 95,000 bpd from the prior week and above the 101,000 bpd imported in the same week last year.  

Motor gasoline stocks in PADD 1 declined by 2.4 million bbl to 54.5 million bbl in the week ended May 8, EIA data showed and were below the 58.2 million bbl recorded in the same week last year. The latest level was the lowest since the week ended January 2, when inventories stood at 53.5 million bbl. Gasoline imports into the East Coast averaged 166,000 bpd, down by 250,000 bpd week-over-week and below the 571,000 bpd imported in the comparable week of the prior year.  

Crude oil inventories on the East Coast declined by 800,000 bbl to 7.7 million bbl week-over-week and were slightly below the 8 million bbl reported in the same week of 2025. Crude oil imports fell by 292,000 bpd to 304,000 bpd and were below the 577,000 bpd recorded in the comparable week last year.  

Jet fuel inventories in PADD 1 declined by 800,000 bbl to 9.7 million bbl in the reference week but remained slightly above the 9.6 million bbl recorded in the same period last year. Imports of the product into the region averaged 0 bpd, down from 19,000 bpd the prior week and below the 13,000 bpd imported a year earlier.  

Refinery utilization on the East Coast increased to 90% from 89.2% the previous week, with crude oil inputs decreasing by 7,000 bpd to 818,000 bpd, EIA data showed.

BLS: US PPI Jumps 1.4% in April on Energy Costs

The Producer Price Index (PPI) for final demand advanced 1.4% in April, following a revised 0.7% increase in March and a 0.6% rise in February, the U.S. Bureau of Labor Statistics (BLS) reported Wednesday (5/13).

The April increase was the largest monthly advance since March 2022, while the year-on-year increase in final demand prices reached 6% in April, the highest since December 2022.

Nearly 60% of the April increase in final demand prices can be attributed to a 1.2% rise in the index for final demand services. Prices for final demand goods increased 2% during the month.

The increase in goods prices was driven largely by a 7.8% jump in the index for final demand energy. More than 40% of the increase in final demand goods prices was linked to a 15.6% surge in gasoline prices, while jet fuel and diesel fuel prices also moved higher, BLS said.

Core PPI for final demand, which excludes food, energy, and trade services, rose 0.6% in April, the largest increase since October 2025, after advancing 0.2% in March. On a 12-month basis, the core index increased 4.4%, the largest year-on-year gain since February 2023.

OPEC Cuts 2026 Outlook as Saudi Output Hits 1990 Low

The 22 oil-producing countries identified as part of the OPEC+ network produced 1.74 million bpd less in April to average 33.19 million bpd as global supply was impacted by the Middle East conflict and disruptions to the Strait of Hormuz,  the Organization of the Petroleum Exporting Countries (OPEC) said in its May monthly report issued Wednesday (5/13).

Saudi Arabia’s output alone fell to its lowest in more than 35 years as it produced approximately 7.5 million bpd in April, its lowest since 1990.

With those declines, OPEC revised its 2026 global oil demand growth forecast down by 210,000 bpd to 1.17 million bpd. The adjustment stems from downward revisions for the second, third, and fourth quarters of 2026 across countries under the Organisation for Economic Co-operation and Development (OECD) as well as non-OECD regions.

U.S. liquids production is expected to increase by 150,000 bpd in 2026, though crude and condensate output may drop by 100,000 bpd. Gains in NGLs and biofuels are forecast to offset the decline in US crude production.

The OPEC Reference Basket price for crude dropped by $7.57 in April to average $108.79 per bbl. Meanwhile, NYMEX WTI front-month futures increased by $7.67 during the same period to average $98.67 per bbl.

The forecast for 2027 global oil demand growth was revised upward by approximately 200,000 bpd to 1.54 million bpd. Total world demand for 2027 is now projected to reach an average of 107.82 million bpd.