MARKETWIRE ALERTS

MARKETWIRE ALERTS 

MarketWire Afternoon News for December 10th

Updated at 5:00 PM ET 

HEADLINES:

— EIA: Heating Oil Prices Mixed on Wk as Winter Demand Grows

— AAR: Petroleum Carloads Up 0.9% for Week to Dec. 6

— Fed Drops 25 Basis Points in 3rd Rate Cut of the Year

— EIA: PADD 2 Sees Weekly 2M Bbl Build in Distillate Stocks

— Valero Reports Flare at Port Arthur Refinery on Dec. 9

— EIA: PADD 1 Gasoline Up 1.6M Bbl, Distillates Up 100K

— EIA: U.S. Crude Stocks Down 1.8M Bbl on Week, Fuels Jump

— EIA: PADD 5 Gasoline Up 700,000 Bbl on Week

— BTS: Oct. Freight Shipments Dip 1.2% on Month and Year

— Chevron Reports Flaring Under Investigation at El Segundo

NEWS:

EIA: Heating Oil Prices Mixed on Wk as Winter Demand Grows

U.S. residential heating oil prices edged lower in the week ended December 8, 2025, offering modest relief to consumers even as wholesale markets moved in the opposite direction, according to the latest Energy Information Administration data released Wednesday (12/10).

The national average residential heating oil price was at $3.732 gallon, declining by $0.008 from the previous week. However, on a yearly basis, prices were $0.229 higher than the same period last year. This was a 6.5% year-over-year hike that consumers will have to pay ahead of winter’s peak heating season.

The modest weekly decline in retail prices moved in opposite direction from wholesale heating oil markets, where prices climbed $0.020 to reach $2.516 gallon. This widened the retail-wholesale spread to nearly $1.22 gallon, while wholesale prices were up $0.25 year-over-year.

The Midwest recorded the steepest weekly drop in residential prices, which as a region fell by $0.092 to $3.296 per gallon in the profiled week – falling more than the national average decrease.  Wholesale prices in the Midwest edged down $0.022.

Meanwhile, Ohio led the region’s downward trend in the residential market, with a $0.147 weekly drop, while Iowa prices registered the second largest drop of $0.111, the EIA data showed.

The East Coast, the largest U.S. heating oil market, saw residential prices dip just $0.003 to $3.753 gallon last week, while wholesale prices rose $0.020 during the same period. Central Atlantic states, including New Jersey and New York reported the nation’s highest weekly residential prices at $4.002 gallon and $4.033 gallon, respectively.

Week-on-week, residential prices surged most in Rhode Island by increasing $0.014. On an annual basis, Rhode Island showed a $0.304 increase.

On a weekly basis, wholesale increases were led by Ohio, which posted a $0.135 increase. Year-on-year, Ohio prices rose $0.050, according to the EIA data.

The data underscores a challenging environment in the Northeast where approximately 5 million homes rely on this fuel source.

AAR: Petroleum Carloads Up 0.9% for Week to Dec. 6

The Association of American Railroads (AAR) data show petroleum and petroleum product carloads totaled 11,591 in the week ending December 6, up by 0.9% from the same week a year earlier.

Year to date, petroleum and petroleum products carloads totaled 507,652, down by 1.6% from the corresponding period of the prior year, an AAR report published on Wednesday (12/10) showed.

Total U.S. weekly rail traffic at 508,999 carloads and intermodal units in the week profiled was down by 2.3% when compared with the same week last year.

Total carloads for the week-ended December 6 reached 228,823, up by 1.7% compared to the same week last year, while U.S. weekly intermodal volume was 280,176 containers and trailers, a 5.4% decrease from the previous year.

For the first 49 weeks of 2025, U.S. railroads reported cumulative volume of 10,889,132 carloads and 13,277,231 intermodal units. Both were up by 1.8% from the prior year.

Total combined U.S. traffic for the first 49 weeks of the year was 24,166,363 carloads and intermodal units, also reflecting a 1.9% increase compared to last year.

Fed Drops 25 Basis Points in 3rd Rate Cut of the Year

The Federal Reserve on Wednesday (12/10) cut U.S. interest rates by 25 basis points, or a quarter percentage point, for a third straight time in an effort to strengthen a sluggish U.S. labor market.

“In support of its goals and in light of the shift in the balance of risks, the Committee decided to lower the target range for the federal funds rate by 1/4 percentage point to 3-1/2 to 3‑3/4 percent,” the Federal Open Market Committee, which decides on rates for the Fed, said in a statement.

The Fed has a dual mandate of creating maximum employment opportunities across the U.S. economy while keeping prices stable.

Prior to Wednesday’s widely-expected cut, the central bank made similar 25-basis point reductions in September and October after economists cautioned that rising unemployment could tip the economy into a recession. Private payrolls fell by 32,000 in November while unemployment rate hit a near four-year high of 4.4%.

The latest rate cut brings key U.S. lending rates to a range of between 3.75% and 4%, from the 4.5%-4.75% range before the reductions that began in September.

The Fed has another eight rate decisions to make in 2026.

EIA: PADD 2 Sees Weekly 2M Bbl Build in Distillate Stocks

Midwest (PADD 2) inventories for distillate fuel, gasoline, jet fuel and crude oil mostly increased in the week ending December 5, U.S. Energy Information Administration data released Wednesday (12/10) showed.

Regional distillate fuel oil inventories rose by 2 million bbl to 26.9 million bbl, while remaining below the 28.3 million bbl reported in the same week last year. The region held 25.9 million bbl of ultra-low sulfur diesel, compared with 27.6 million bbl last year. With winter heating demand approaching its peak period in the Midwest, the recent builds offer some near-term cushion. However, stocks remain tight versus seasonal norms, keeping diesel prices sensitive to any supply disruptions or cold-weather swings.  PADD 2 retail diesel averaged $3.635 gallon last week, 12cts higher than the same period last year.

PADD 2 gasoline stocks posted a sizable increase, up by 2.8 million bbl to 47.7 million bbl in the profiled week, compared with 46.3 million bbl in the same week last year. Motor gasoline blending component inventories also rose, up by 2.1 million bbl to 43.2 million bbl, versus 42.5 million bbl in the same week last year. Midwest gasoline imports averaged 20,000 bpd for the week, compared with 31,000 bpd same period previous year. PADD 2 retail gasoline averaged $2.762 gallon, 8cts below the same period last year.

Jet fuel stockpiles in the Midwest posted a small decline, falling by 300,000 bbl to 7.4 million bbl, slightly under the 7.6 million bbl level from the same week last year.

Crude oil stockpiles in PADD 2 increased by 1 million bbl to 102 million bbl, compared with 105.0 million bbl in the same week last year. Regional crude imports climbed to 3.163 million bpd, compared with 2.740 million bpd the prior week.

Valero Reports Flare at Port Arthur Refinery on Dec. 9

Valero reported a six-hour flaring event at its 435,000 bpd Port Arthur, Texas, refinery on Tuesday (12/9) morning due to a process upset at its delayed coking unit, according to a Texas Commission on Environmental Quality filing.

The flaring event, which began at 1:00 am CT on Tuesday  and ended at 7:00 a.m. the same day, was triggered by a process upset unexpectedly occurring at the delayed coking unit related to the refinery’s Compressor C-151, Valero said.

As a result, Valero said the “management of material at the control device (Flare 26)” was activated “in order to minimize emissions”.

Estimated emissions per hour reported during the flaring event included 260.1 lb of hydrogen sulfide and 23,958.44 lb of sulfur dioxide, along with 283.8 lb of unspecified volatile organic compounds.

Process adjustments were made “to bring C-151 back online and stop the flaring”, Valero’s filing stated.

Valero reported several unit malfunctions at its Port Arthur refinery in late October, resulting in temporary shutdown of the units.

EIA: PADD 1 Gasoline Up 1.6M Bbl, Distillates Up 100K

East Coast inventories of gasoline and distillate fuel oil increased in the week ending December 5, while regional jet fuel stocks edged lower and crude oil inventories posted a draw, U.S. Energy Information Administration data released Wednesday (12/10) showed.

PADD 1 gasoline stocks rose by 1.6 million bbl to 49.6 million bbl in the profiled week, compared with 54.3 million bbl in the same week last year. Motor gasoline blending component stocks also increased, up 1.2 million bbl to 47.2 million bbl, and compared with the 51.4 million bbl in the same week last year. Seasonal gasoline demand in the region continues to ease into December, keeping stocks relatively balanced despite the weekly build.

Jet fuel inventories on the East Coast slipped slightly, down 100,000 bbl to 9.8 million bbl, compared with 11.3 million bbl in the same week last year.

Regional distillate fuel oil inventories increased by 100,000 bbl to 28.7 million bbl, well below the 35.8 million bbl reported in the same week last year. The region held 27.3 million bbl of ultra-low sulfur diesel, compared with 34.3 million bbl last year. With heating demand beginning to accelerate ahead of colder winter weather, the low stock position continues to keep supply conditions tight. That has provided underlying support for regional diesel and heating oil prices, with on-highway diesel in PADD 1 averaging about $3.73 gallon last week, up by 16cts gallon from the same week last year.

Crude oil inventories in PADD 1 declined 600,000 bbl to 7.9 million bbl, compared with 8 million bbl in the same week last year.

EIA: U.S. Crude Stocks Down 1.8M Bbl on Week, Fuels Jump

U.S. commercial crude oil inventories fell during the week ended December 5, while gasoline and distillate fuel oil stocks jumped, the Energy Information Administration reported Wednesday (12/10).

Commercial crude stocks fell by 1.8 million bbl to 425.7 million bbl, following the prior week’s climb of 600,000 bbl, the EIA said in its Weekly Petroleum Status Report.

With the weekly decline, U.S. crude inventories stood at 3.7 million bbl, or 0.9%, above year-ago levels, the report showed.

Despite the broader crude inventory slide, stockpiles at Cushing, Oklahoma, the delivery point for NYMEX West Texas Intermediate futures, rose 300,000 bbl to stand at 21.6 million bbl during the week ended December 5.

Distillate fuel oil inventories rose by 2.5 million bbl to 116.8 million bbl, adding to the prior weekly growth of 2.1 million bbl. Year-on-year, however, distillate stocks were down 4.5 million bbl, with most of the deficit occurring in low-sulfur grades.

Total motor gasoline inventories increased by 6.4 million bbl to 220.8 million bbl during the profiled week, adding to the prior week’s rise of 4.5 million bbl. Blending components rose by 5.1 million bbl to 204.6 million bbl, accounting for most of the increase, while conventional gasoline stocks grew 1.3 million bbl to 16.2 million bbl.

Refinery utilization stood at 94.5% of operable capacity, up by 0.4% from the prior week. Crude runs averaged 16.87 million bpd, unchanged from the prior week.

Crude exports averaged 4.01 million bpd, up by 396,000 bpd from the previous week, while crude imports rose by 609,000 bpd to 6.59 million bpd.

Total products supplied over the last four weeks averaged 20.42 million bpd, up 325,000 bpd from the same period a year earlier. Gasoline demand averaged 8.46 million bpd last week, down 4% year-on-year, while distillate demand averaged 4.16 million bpd, up 20.6% year-on-year.

EIA: PADD 5 Gasoline Up 700,000 Bbl on Week

West Coast refined product inventories were mostly higher during the week ending December 5, according to U.S. Energy Information Administration data released Wednesday (12/10).

Gasoline stocks in PADD 5 increased by 700,000 bbl to 28.4 million bbl in the profiled week, higher than the 28.2 million bbl inventory in the same week of last year. Gasoline imports in the region slipped by 142,000 bpd to 101,000 bpd, compared with zero bpd in the same period the previous year.

West Coast distillate inventories were unchanged at 11.5 million bbl in the reference week, but below the 12.2 million bbl stockpile reported a year ago. Distillate imports fell by 4,000 bpd to 1,000 bpd, compared with 6,000 bpd last year.

Crude oil stocks in PADD 5 rose by 1.3 million bbl to 47.8 million bbl in the week ending December 5, below the 49.6 million bbl recorded in the same week last year.

Jet fuel inventories in PADD 5 climbed by 200,000 bbl to 11.4 million bbl in the referenced week, above the 10.4 million bbl reported last year. Jet fuel imports fell by 77,000 bpd to 52,000 bpd, significantly lower than the 118,000 bpd reported in the previous year.

BTS: Oct. Freight Shipments Dip 1.2% on Month and Year

The Freight Transportation Services Index, which is based on the amount of freight carried by the for-hire transportation industry, dipped 1.2% month-on-month to 136.7 in October, the Bureau of Transportation Statistics (BTS) at the U.S. Department of Transportation said Wednesday (12/10).

The drop for October was registered after the BTS revised upwards the September reading of the index to 139.1 from a previously published 136.2.

On a yearly basis, the index also fell 1.2% from October 2024, the BTS said.

The agency noted that October’s decline reflected decreases in rail carloads, rail intermodal, pipeline and trucking, while air freight and water volumes increased.

The September decrease coincided with flat readings for many other indicators. While the Institute for Supply Management Manufacturing index registered a 0.4% drop for the month, there was no change in the Federal Reserve Board Industrial Production Index that had subsets for manufacturing, mining and utilities. Also maintaining status quo were indicators for housing starts, retails sales and personal income.

The Passenger Transportation Services Index, meanwhile, rose 0.6% month-on-month and 1.6% year-on-year in October. In September, the index – which measures passenger transportation volumes on local transit, intercity rail and air transportation – declined 2.9% on the month and 1.1% on the year.

The Combined Freight and Passenger Index, meanwhile, slipped 0.5% month-on-month and 0.2% year-on-year in October. In September, the combined index registered declines of 2.3% on the month and 1.1% on the year. BTS estimates air freight and air passenger readings one month ahead of reported data.

Chevron Reports Flaring Under Investigation at El Segundo

Chevron reported on Tuesday (12/09) an ongoing flaring event at its 269,000 bpd El Segundo, California, refinery that began at 9:39 p.m. PT on December 9, with no listed stop time, according to a filing with the South Coast Air Quality Management District.

The cause of the flare was listed as “initial determination unknown ,” according to the district filing. The unit affected by the flaring was not disclosed.

El Segundo refinery has reported other flaring events in recent months.

Chevron’s El Segundo refinery is one of the largest on the U.S. West Coast and a key supplier of gasoline, diesel and jet fuel into the Los Angeles Basin.