MARKETWIRE ALERTS

MARKETWIRE ALERTS 

MarketWire Afternoon News for June 11^th

Updated at 5:30 PM ET 

HEADLINES:

— LA ULSD Basis Falls 9cts on Higher Inventories

— Midwest Jet Fuel Basis Firms as ULSD Futures Fall

— ExxonMobil Beaumont Refinery Reports Emission

— WTI Dips Nearly 5% as Trump Cancels Strikes on Iran

— EIA: Higher Biofuel Blending Target Pushes RINs Values

— World Bank: Middle East Conflict Slows Global Growth

— BP, Union Remain Apart After Latest Whiting Talks

— EIA: US NatGas Storage Reports 108 Bcf Weekly Injection

— CEC: California Diesel Stocks Fall 233,000 Bbl on Week

— CEC: California Gasoline Stocks Rise 76,000 Bbl on Week

— BLS: PPI Jumps 6.5% Y-o-Y in May Amid Goods’ Price Surge

— OPEC Cuts 2026 Demand Target as Combined Supply Dips

NEWS:

LA ULSD Basis Falls 9cts on Higher Inventories

Prompt Los Angeles ultra-low sulfur diesel basis weakened Thursday (6/11), falling by 9cts as rising West Coast distillate inventories helped ease supply concerns despite continued refinery constraints in California.

Los Angeles ULSD traded at  3cts premium to July NYMEX ULSD futures, down 9cts from Wednesday’s (6/10) last pegged value of 12cts premium.

Distillate fuel oil inventories in the region increased by 200,000 bbl to 10.2 million bbl during the week ending June 5 and were 200,000 bbl lower than the volume reported in the same period last year, according to U.S. Energy Information Administration data.

PADD 5 distillate imports fell by 9,000 bpd to 3,000 bpd on the week but were 2,000 bpd higher than the same week in 2025.

The lower basis came as the inventory build signaled improving regional supply conditions, offsetting support from the shutdown of Phillips 66’s 139,000 bpd Los Angeles refinery and the ongoing closure process at Valero’s 145,000 bpd Benicia refinery. While refinery outages continue to limit production capacity, the increase in distillate stocks helped pressure diesel premiums lower.

Midwest Jet Fuel Basis Firms as ULSD Futures Fall

Midwest jet fuel basis values strengthened Thursday (6/11), supported by tightening regional supply and and a sharp decline in ultra-low sulfur diesel (ULSD) futures that boosted relative physical market values.

Group 3 jet fuel basis was assessed at 75cts discount to July ULSD futures, up 5cts from the previous session and the highest level since June 1, when it was assessed at 26.25cts discount, according to DTN data.

Chicago jet fuel basis was assessed at 70cts discount to July ULSD futures, a 5cts increase on the day and the steepest hike since June 2, when basis was assessed at 65cts discount. 

The gain came as July ULSD futures dropped roughly 15cts during Thursday’s session to settle at $3.5843 gallon, their lowest close of the week. While the decline in futures strengthened basis values, tighter jet fundamentals also offered support after U.S. jet fuel inventories declined by 200,000 bbl to 7.4 million bbl in the latest reporting week.

Spot values also recovered from late last week. Chicago jet fuel was assessed at $2.7652 gallon versus $2.5747 gallon on June 5, while Group 3 jet fuel reached $2.7152 gallon from $2.6169 gallon, its lowest level since March 3

ExxonMobil Beaumont Refinery Reports Emission

ExxonMobil reported on Thursday (6/11) an emission event at the  sulfur recovery unit of its 612,000 bpd Beaumont, Texas, refinery, according to a filing with the Texas Commission on Environmental Quality.

The emission began at 12:56 a.m. Thursday and concluded at 2:39 a.m. The incident was caused by a unit trip that resulted in emissions from the SRU2/3 thermal oxidizer.

Six air contaminants were released, with an estimated 4,435 pounds of sulfur dioxide emitted, while nitrogen oxides reached 45.3 pounds and carbon monoxide totaled 75.36 pounds. Hydrogen sulfide, particulate matter, and volatile organic compounds (VOCs) were also released, though in smaller quantities.

Operators worked to restore normal operations and routed process streams through the thermal oxidizer to minimize further emissions. No offsite impacts were reported, according to the filing.

“We expect to meet all contractual commitments,” ExxonMobil stated.

WTI Dips Nearly 5% as Trump Cancels Strikes on Iran

Oil futures prices retreated on Thursday (6/11), dropping by nearly 5% after U.S. President Donald Trump canceled scheduled strikes on Iran and suggested that a deal is close.

The NYMEX WTI crude futures contract for July delivery fell $4.03 to $86.00 bbl, after a session high at $93.64.  ICE Brent for August shipments dropped $4.39 to $88.71 bbl after peaking at $ 95.50.

July NYMEX ULSD slipped by $0.1511 to $3.4615 gallon, while the front-month RBOB futures contract retreated by $0.0521 to $3.0578 gallon.

The U.S. dollar index dropped/rose by 0.319 point to 99.615 against a basket of foreign currencies.

In a post on Truth Social, Trump said talks with Iran “have been brought to the highest level of Iranian level and approved.”

Following Trump’s statement, a bearish sentiment dominated the oil futures market, erasing part of Wednesday’s gains. Crude oil benchmarks rallied on Wednesday after the U.S. Energy Information Administration reported a seventh consecutive weekly draw in domestic crude inventories.

U.S. commercial crude oil inventories fell by 7.2 million bbl to 426.5 million bbl during the week ended June 5, the lowest commercial crude oil inventory level since the week ended February 13, 2026, when stocks stood at 419.8 million bbl.

Distillate fuel inventories declined by 200,000 bbl to 102.1 million bbl during the reference week after rebounding the prior week. In contrast, total motor gasoline stocks increased by 200,000 bbl to 215.1 million bbl during the reference week.

Separately, the World Bank said in its latest Global Economic Prospects report that the conflict in the Middle East is expected to slow global economic growth to its weakest pace since the COVID-19 pandemic, as higher energy costs fuel inflation and keep borrowing costs elevated.

The World Bank lowered its forecast for global growth to 2.5% in 2026 from 2.9% in 2025, citing weaker outlooks across roughly two-thirds of economies. The report assumes disruptions tied to the closure of the Strait of Hormuz begin easing later this year but warns energy markets remain vulnerable.

Brent crude oil is projected to average $94 bbl in 2026, up 36% from 2025 under the report’s baseline scenario.

EIA: Higher Biofuel Blending Target Pushes RINs Values

Renewable identification numbers (RINs) have nearly doubled in value since January due to higher U.S. biofuel blending targets, according to the Energy Information Administration (EIA).  

As of June 4, biomass-based diesel (D4) RINs traded at $2.41 and ethanol (D6) RINs traded at $2.37, both close to their all-time highs set in 2021, the EIA reported on Wednesday (6/11). Because one gallon generates 1.5 RINs for biodiesel and 1.6 to 1.7 RINs for renewable diesel, these fuels currently generate more than $3.50/gal of credits. A gallon of fuel ethanol generates 1.0 RIN.

RIN prices increased in 2026 primarily because of higher blending mandates. On March 27, the EPA announced the final RFS rule for 2026 and 2027, establishing significantly higher Renewable Volume Obligations (RVOs) than those in 2025.

Higher prices for petroleum products make fuel ethanol relatively more attractive for blending into gasoline.

 Relative to motor gasoline prices, the U.S. Gulf Coast fuel ethanol price, adjusted for energy equivalence, has been lower most days since mid-March. The higher RIN value that blenders using ethanol can then sell on the open market to companies that need to remain in compliance also incentivizes greater blending into gasoline. The fuel ethanol discount to gasoline has been more than $2.00 gallon in May and June when the higher RIN value is included.

High RIN values have also supported production and blending margins for biodiesel and renewable diesel.

The EIA forecasts record-high production of fuel ethanol and renewable diesel in 2026, increasing by 24% and 41%, respectively, year-over-year, supported by high blending mandates, high gasoline and diesel prices, and increasing production capacity at biofuel plants.

 Biodiesel production is expected to increase, but it will remain below record highs because of lost production capacity, according to the EIA.

The agency also projects increased production of all three fuels in 2027, when the RVO increases further.

World Bank: Middle East Conflict Slows Global Growth

The conflict in the Middle East is expected to slow global economic growth to its weakest pace since the COVID-19 pandemic, as higher energy costs fuel inflation and keep borrowing costs elevated, according to the World Bank’s latest Global Economic Prospects report.

The World Bank lowered its forecast for global growth to 2.5% in 2026 from 2.9% in 2025, citing weaker outlooks across roughly two-thirds of economies. The report assumes disruptions tied to the closure of the Strait of Hormuz begin easing later this year but warns energy markets remain vulnerable.

For the United States and other major consuming economies, the report points to higher crude oil and fertilizer prices as key inflation risks that could pressure household spending and business activity while complicating the path for interest rate cuts. Brent crude oil is projected to average $94 bbl in 2026, up 36% from 2025 under the report’s baseline scenario.

Global inflation is expected to rise to 4.0% this year from 3.3% in 2025, while developing economies are forecast to post their weakest growth rate since the pandemic recovery period.

The World Bank warned downside risks remain elevated. In a more severe disruption scenario combined with financial market stress, global growth could slow to 1.3% in 2026 while inflation accelerates further.

The institution said it stands ready to provide up to $100 billion over 15 months to support affected countries if economic conditions worsen.

BP, Union Remain Apart After Latest Whiting Talks

Contract negotiations between BP and union workers at the Whiting, Indiana refinery ended without an agreement Wednesday (6/10) extending a labor dispute that has kept workers locked out since March, according to media reports.

Multiple media outlets reported that officials from BP’s Whiting refinery and the United Steelworkers met for another round of talks, but the company said both sides remain apart on key contract issues.

The dispute involves roughly 900 union-represented workers at the 440,000 bpd refinery, the largest in the Midwest and a major supplier of gasoline, ultra-low sulfur diesel and jet fuel to the region.

Union officials have previously opposed proposals they say would reduce jobs and lower compensation levels, while BP has said its proposals are intended to support long-term operations at the facility.

BP said refinery operations continue during the labor dispute and that the site remains operating safely.

The refinery’s production volumes represent nearly 25% of refined petroleum products used across parts of Illinois, Indiana, Michigan and Wisconsin, with direct pipeline access into Chicago and broader Great Lakes distribution markets.

EIA: US NatGas Storage Reports 108 Bcf Weekly Injection

Energy Information Administration data released midmorning Thursday show a 108 billion cubic feet injection into U.S. natural gas storage to 2.686 trillion cubic feet in the week ended June 05.
Natural gas in U.S. storage is 0.2% lower than last year and 6% above the five-year average of 2.535 Tcf.
Regionally, EIA reports the East registered a 34 Bcf injection to 514 Bcf, 2.3% less than a year ago and 2.2% higher than the five-year average.
Natural gas in storage in the Midwest increased 37 Bcf week-on-week to 610 Bcf, a 1% surplus compared to the same week a year ago and 3.9% higher than the five-year average.
Mountain region natural gas in storage increased 4 Bcf, up 6.2% year-on-year to 29.8% above the five-year average.
South Central storage rose 28 Bcf to 1037 Bcf, 4.5% less than in the same week last year and 0.2% above the five-year average.

CEC: California Diesel Stocks Fall 233,000 Bbl on Week

California Energy Commission data show statewide diesel inventories declined in the week ending June 5, as the agency continues to report only statewide totals in its Weekly Fuels Report released Thursday (6/11).

Statewide CARB diesel and other diesel fuel stocks fell by 233,000 bbl to 2.187 million bbl from 2.420 million bbl the previous week and were 24% lower than the same period last year.

Statewide diesel production declined by 140,000 bbl to 1.370 million bbl from 1.510 million bbl the previous week and was 8% lower than the 1.487 million bbl reported a year earlier.

The California Energy Commission is currently publishing only statewide diesel inventory and production data and is no longer providing regional Northern and Southern California breakdowns.

CEC: California Gasoline Stocks Rise 76,000 Bbl on Week

California Energy Commission data show statewide gasoline inventories increased in the week ending June 5, as the agency continues to report only statewide totals in its Weekly Fuels Report released Thursday (6/11).

Statewide gasoline stocks, including CARB reformulated, non-California, and blending components, climbed by 76,000 bbl to 9.699 million bbl from 9.623 million bbl the previous week, but were 13% lower than the same period last year.

Statewide gasoline production rose by 556,000 bbl to 5.561 million bbl from 5.005 million bbl the previous week, though production remained 12% below last year’s level of 6.303 million bbl.

The California Energy Commission is currently publishing only statewide gasoline inventory and production data and is no longer providing regional Northern and Southern California breakdowns.

BLS: PPI Jumps 6.5% Y-o-Y in May Amid Goods’ Price Surge

U.S. wholesale prices jumped 6.5% for the 12 months ended in May as inflationary pressures intensified, the U.S. Bureau of Labor Statistics (BLS) reported Thursday. The sharp annual increase marks the fastest pace of wholesale inflation since a 7.4% surge in November 2022.

On a monthly basis, the Producer Price Index (PPI) for final demand rose 1.1% in May, following a 1.4% jump in April. Nearly 80% of the May increase came from a 2.8% spike in the cost of raw goods.

That surge in goods prices represents the largest single-month increase since tracking began in December 2009, fueled by a 10.7% leap in energy costs. Meanwhile, prices for commercial services slowed significantly, moving up just 0.3% during the month.

Over half of the monthly jump in goods was driven by a 23.4% spike in gasoline prices. Wholesale diesel fuel and jet fuel costs also moved higher during the month, BLS said.

Core wholesale prices, which strip out volatile food, energy, and trade services, climbed 0.8% in May after a 0.6% rise in April. On a 12-month basis, core PPI increased 5.1%, the largest annual gain since October 2022.

OPEC Cuts 2026 Demand Target as Combined Supply Dips

The broader OPEC+ alliance cut back its oil manufacturing in May, pumping 190,000 fewer bpd than they did in April, bringing their total daily output down to a 33.13 million bpd average, the June report of Organization of the Petroleum Exporting Countries showed Thursday (6/11).

The combined crude oil output contraction from nations that form OPEC+’s Declaration of Cooperation coalition reflects a 180,000 bpd monthly decrease from core OPEC members and a minor 10,000 bpd slide from participating non-OPEC allies.

Reflecting evolving macroeconomic data, OPEC trimmed its 2026 global oil demand growth projection down by 200,000 bpd to land at a 1.0 million bpd expansion. Developing nations outside the OECD remain the key engine, forecast to pull consumption higher by 0.9 million bpd.

Supplies coming from independent non-DoC producers are still on track to expand by 0.6 million bpd this year, anchored securely by the Americas. Strong operational output across the U.S., Brazil, Canada, and Argentina is expected to dominate near-term global supply additions.

Price indicators diverged across key operational benchmarks during the month. The official OPEC Reference Basket price rallied by $5.49 in May to average $114.55 per bbl, whereas NYMEX WTI front-month futures edged down by $0.16 to hit a $98.51 per bbl average.

Looking further out, the alliance revised its 2027 global oil demand growth target upward by 200,000 bpd to an average of 1.7 million bpd. That stronger recovery track is expected to be led by non-OECD regions, which are forecast to expand by 1.5 million bpd.