MARKETWIRE ALERTS

MARKETWIRE ALERTS 

MarketWire Afternoon News June 12th:

Updated at 5:00 PM ET 

HEADLINES:

— USWC Weekly: Spot Prices Drop, ULSD Sees Steepest Fall

— CFTC: WTI Bullish Bets Tumble on Iran Peace Attempts

— NY Harbor Weekly: Distillates Fall Despite Tight Stocks

— USGC Weekly: Distillates Slip on Stockpile Spike

— Baker Hughes: Weekly North America Rig Count Up 10

— Midwest Fuel Values Dip on Wk as Jet Fuel, ULSD Slide

— Cenovus Responds to Black Smoke, Flaring at Lima Refinery

— University of Michigan: Consumer Sentiment Improves in June

— BTS: U.S. Carriers Had 84.4M Passengers in March

NEWS:

USWC Weekly: Spot Prices Drop, ULSD Sees Steepest Fall

U.S. West Coast fuel spot markets edge lower this week, led by a sharp decline in San Francisco ultra-low sulfur diesel (ULSD) spot prices as improving supply conditions and the absence of major refinery disruptions eased the concerns that had fueled springtime rallies across the region.

The biggest move of the week came in the San Francisco ULSD market, where spot prices averaged $3.6542 gallon during the week, down 43.52cts or 10.64% from the previous week’s $4.0895 gallon average. Despite the decline, prices remained above the $2.4587 gallon recorded during the same period of the previous year. The drop erased much of the risk premium that had accumulated during refinery outages and maintenance events earlier this year.

Los Angeles jet fuel also weakened, with spot prices averaging $3.4782 gallon during the week, down 27.52cts or 7.33% from the previous week’s $3.7535 gallon average. Prices remained above the $2.0787 gallon recorded during the previous year.

Meanwhile, Los Angeles CARBOB regular averaged $3.3461 gallon during the week, down 12.89cts or 3.71% from the prior week’s average of $3.4750 gallon while remaining above the $2.2529 gallon reported during the previous year.

The softer tone across West Coast markets coincided with improving inventory data. According to the Energy Information Administration, PADD 5 gasoline stocks rose by 200,000 bbl to 27.3 million bbl during the week ended June 5, snapping a four-week decline. Distillate inventories increased by 200,000 bbl to 10.2 million bbl, while jet fuel stocks climbed by 200,000 bbl to 11 million bbl.

Unlike earlier this spring, when refinery outages and flaring activity drove sharp gains in diesel and jet fuel premiums, this week was relatively quiet on the operational front. On Thursday (6/9), Chevron reported flaring activity at it’s 245,000 bpd Richmond, California, refinery. The company plans to conduct maintenance on the refinery’s petroleum fluidized catalytic cracker to install a wet gas scrubber. 

With no major refinery disruptions or unplanned outages reported, traders appeared more focused on improving inventory levels and easing prompt supply concerns. 

CFTC: WTI Bullish Bets Tumble on Iran Peace Attempts

Money managers cut their bullish bets in NYMEX West Texas Intermediate (WTI) crude for a third consecutive week as the market hit 7-week lows on continued hopes for an end to the Iran war despite sporadic hostilities between the warring parties in the conflict.

Noncommercial long positions in WTI held by money managers fell by 22,786 contracts to 360,524 during the week ended June 9, according to weekly Commitment of Traders data released on Friday (6/12) by the Commodity Futures Trading Commission (CFTC).

Noncommercial short positions increased by 2,787 contracts to 230,223 during the same week, the CFTC data showed.

This caused the net noncommercial long position in WTI to decline by 25,573 contracts to 130,301. Open interest, meanwhile, slumped by 2,787 contracts to 230,223.

Those moves came as WTI’s front-month contract on NYMEX fell to $85.95 bbl on June 9, the lowest since April 17, after Israel and Iran agreed to halt attacks on each other, reviving diplomatic efforts for an end to the Middle East conflict.

NY Harbor Weekly: Distillates Fall Despite Tight Stocks

Fuel spot markets on the New York Harbor slid during the week ended June 12, with middle distillates retreating after the prior week’s rally even as East Coast inventories remained below previous year levels.

NYH jet fuel recorded the largest decline of the week, falling 23.32cts or 6.65% week-over-week to average $3.2717 gallon, while NYH ULSD declined 18.72cts or 5.06% to average $3.5162 gallon. Despite the weekly decline, both products remained above the previous year’s levels of $2.0562 gallon for jet fuel and $2.2037 gallon for ULSD.

Support from tighter East Coast distillate fundamentals eased this week after the U.S. Energy Information Administration reported distillate fuel oil inventories in PADD 1 increased by 900,000 bbl to 23.1 million bbl during the week ended June 5. Even with the increase, inventories remained 2.4 million bbl below the 25.5 million bbl reported during the same week in 2025.

Distillate imports into the region increased to 120,000 bpd from 86,000 bpd the previous week and above the 89,000 bpd recorded during the previous year. East Coast refinery utilization also increased to 84% from 83.5%, with crude oil inputs rising to 777,000 bpd.

Jet fuel fundamentals were mixed. PADD 1 inventories fell by 800,000 bbl to 11.2 million bbl but remained above the 11 million bbl reported during the same week of the previous year. Imports declined sharply to 39,000 bpd from 131,000 bpd the previous week.

Gasoline also moved lower, with NYH CBOB declining 6.30cts or 2.08% to average $2.9719 gallon, though remaining above the previous year’s level of $2.0192 gallon. The move came as East Coast gasoline inventories edged up by 100,000 bbl to 56.7 million bbl while remaining below the 59.5 million bbl reported during the same week of the previous year. Gasoline imports into PADD 1 averaged 714,000 bpd, down from 780,000 bpd the previous week and 914,000 bpd during the previous year.

No refinery outages or supply disruptions were reported across the East Coast during the week.

USGC Weekly: Distillates Slip on Stockpile Spike

Fuel spot markets on the U.S. Gulf Coast fell during the week ended June 12, with middle distillates retreating after recent strength while crude inventories extended their decline to the lowest level since February.

USGC jet fuel recorded the largest decline during the week, falling 21.57cts or 6.37% week-over-week to average $3.1712 gallon, followed by USGC ultra-low sulfur diesel (ULSD), which declined 17.27cts or 4.75% to average $3.4647 gallon. Despite the weekly decline, both products remained above the previous year’s levels of $2.0062 gallon for jet fuel and $2.1212 gallon for ULSD.

Distillate fundamentals remained mixed after the U.S. Energy Information Administration reported a 600,000 bbl build in PADD 3 distillate fuel oil inventories to 42.2 million bbl during the week ended June 5. Even with the increase, inventories remained below the 45.1 million bbl reported during the same week of the previous year. Ultra-low sulfur distillate inventories also increased by 700,000 bbl to 35 million bbl.

Jet fuel inventories increased by 900,000 bbl to 15.2 million bbl and remained above the 13.6 million bbl reported during the same week of the previous year. As a net exporter of distillate and jet fuel, the Gulf Coast reported essentially no imports during the week.

Gasoline also slipped, with USGC CBOB declining 3.20cts or 1.10% to average $2.8924 gallon. The move came as PADD 3 gasoline inventories declined by 400,000 bbl to 80.9 million bbl but remained below the 86.6 million bbl reported during the same week of the previous year. Gasoline imports averaged 120,000 bpd, up from 43,000 bpd the prior week and above the 36,000 bpd recorded during the previous year.

Crude oil fundamentals remained supportive, with PADD 3 crude inventories falling by 2.8 million bbl to 249.7 million bbl, marking a second consecutive weekly draw and the lowest level since the week ended February 20, 2026, when inventories stood at 248.2 million bbl. Crude imports declined by 513,000 bpd to 1.046 million bpd and remained below the 1.197 million bpd reported during the previous year.

Operationally, refinery activity remained elevated across the Gulf Coast during the week, with refinery utilization increasing to 98.4% from 98.1%, while crude oil inputs rose to 9.582 million bpd. One refinery event was reported during the week after a sulfur recovery unit trip at the Beaumont refinery triggered a short-duration emission event, though operations were restored, and no broader supply disruptions were reported.

Baker Hughes: Weekly North America Rig Count Up 10

North American energy drilling activity increased by 10 rigs this week, according to Baker Hughes’ weekly rigs report released Friday (6/12).

The regional rig count for the week ended June 12 stood at 742, compared to 732 in the week prior.

Year-on-year, rigs for Canada and the U.S. combined were also up 49 than the 693 actively deployed in the same week of 2025.

This week’s rig changes were driven entirely by gains in Canada, which saw an 11-rig increase, offsetting a one-rig decline in the U.S.

As a result, Canada’s tally stood at 180, while the U.S. count adjusted to 562.

In the United States, oil rigs increased by two to 433. Conversely, the gas rig count dropped by three to 121, and miscellaneous rigs remained unchanged at eight.

By trajectory, U.S. horizontal rigs stood at 478 and directional rigs at 69, after dropping by three rigs and adding five, respectively. Vertical rigs fell by two to 11.

Midwest Fuel Values Dip on Wk as Jet Fuel, ULSD Slide

Midwest fuel spot prices slid this week, led by a sharp decline in Group 3 jet fuel averages, DTN data showed Friday (6/12), as easing prompt supply concerns and a quiet operational front across the region helped reverse upward pressure seen last week.

The biggest move of the week came in the Group 3 jet fuel market, where the average fell by 20.29cts to $2.7541 gallon, marking a 6.86% decline from the previous week’s average of $2.9570 gallon.

The steep drop in jet fuel prices came despite Energy Information Administration data showing PADD 2 jet fuel inventories actually fell 200,000 bbl to 7.4 million bbl. However, regional inventories remained a comfortable 800,000 bbl above year-ago levels, which likely cushioned the market against supply anxiety.

Group 3 ULSD basis also weakened, falling $0.1109 gallon after starting the week significantly higher. The ULSD weekly average price was $3.3086, down 3.24% from the $3.4195 recorded a week earlier, and up 36% year-over-year.

The downturn in diesel aligned with a 300,000 bbl build in PADD 2 distillate inventories to 25.3 million bbl during the week ended June 5, according to the EIA. Easing supply worries were further supported by regional refinery inputs climbing to 4.205 million bpd from 4.148 million bpd the prior week.

Meanwhile, Group 3 suboctane gasoline bucked the downward trend, trading as high as $3.0014 gallon on Thursday (6/11) before dropping to 2.9630 by Friday. Week-on-week, the average suboctane gasoline price rose $0.0276 gallon, or 0.94% above the $2.9355 reported in the previous week. This was 45% above the same week of last year.

Gasoline’s resilience came despite a 1.1 million bbl rebound in PADD 2 stocks to 44.4 million bbl last week, suggesting traders remained cautious as regional gasoline inventories stayed 3.0 million bbl below year-ago levels heading deeper into summer driving.

Among Midwest refineries this week, contract negotiations at BP’s 435,000 bpd facility in Whiting, Indiana remained at an impasse since March while Cenovus Energy experienced an operational issue that led to brief intense smoke and flaring at its 172,000 bpd Lima refinery in northwest Ohio.

With no other disruptions or unplanned outages reported, traders appeared more focused on rising refinery utilization and improving overall inventory trends. The broad declines across diesel and jet fuel averages provide a softer entry heading into peak seasonal demand.

Cenovus Responds to Black Smoke, Flaring at Lima Refinery

Cenovus Energy said it was addressing an operational issue at its 172,000 bpd Lima refinery in northwest Ohio that has resulted in heavy flaring and black smoke.

“As the refinery responds, community members will see larger than normal flaring with black smoke as part of these standard safety procedures,” Cenovus said in the statement issued Wednesday (6/10) when local media first reported the matter.

The company said it was using standard response protocols to the incident and that local air quality was being monitored, emphasizing its priority on the safety of personnel and responders on the ground, as well as the environment and community.

The Ohio Environmental Protection Agency has not yet reported on the matter or issued a public summary of the emissions. Cenovus did not immediately respond to a DTN email seeking further details.

University of Michigan: Consumer Sentiment Improves in June

U.S. consumer sentiment improved in June, with the Index of Consumer Sentiment rising 4.1 points to 48.9, according to preliminary data from the University of Michigan’s Surveys of Consumers released Friday (6/12) morning. Last month, soaring energy costs sparked by the ongoing U.S.-Israeli war on Iran led the index to plummet to 44.8, the first sub-50 reading in the survey’s history.

The Current Economic Conditions Index, measuring sentiment about personal finances and buying conditions, increased 2.6 points, or 5.7%, to 48.4 from May. Year-on-year, the index dropped 25.3%.

The Index of Consumer Expectations, which reflects the economic outlook over the next 12 months, rose by 5.2 points to 49.3 month-over-month. This is the second month, the index fell below the 50-point mark for the first time since May 2025.

“Even with June’s early gains, however, views of the economy are still relatively dour. Sentiment is currently 13% below January 2026 and 19% below a year ago, as consumers remain focused on kitchen table issues,” said Surveys of Consumers Director Joanne Hsu.

According to Hsu, consumers feel burdened by the recent escalation in inflation and are concerned that elevated inflation will remain high in the short run.

Year-ahead inflation expectations inched down from 4.8% in May to a still-elevated 4.6% this month. The current reading substantially exceeds the 3.4% reading seen in February 2026 prior to the start of the Iran conflict, along with all 2024 readings, the report stated. Long-run inflation expectations fell back to 3.4% in June from 3.9% in May, remaining notably higher than the 2.8% to 3.2% range seen in 2024.

BTS: U.S. Carriers Had 84.4M Passengers in March

U.S. airlines carried 84.4 million systemwide passengers in March 2026, a 0.9% increase from the same month last year, the Bureau of Transportation Statistics reported Thursday (6/11).

The total includes 73.1 million domestic and 11.3 million international passengers traveling on U.S. airline flights throughout the month.

The agency noted that seasonally adjusted enplanements fell 0.3% from February and remained 1.9% below the all-time high reached in June 2024.

While systemwide unadjusted passenger numbers fell 0.5% from the March 2024 high, domestic and international boardings both neared their respective historical records for the month.