MARKETWIRE ALERTS

MARKETWIRE ALERTS 

MarketWire Afternoon News for February 3rd:

Updated at 5:00 PM ET 

HEADLINES:

— API: Crude Stocks Soar After Storm; Gasoline Back to Build

— Refining Constraints Keep West Coast Gasoline Prices Up

— U.S. Congress Votes to End Partial Govt. Shutdown

— Marathon Q4 Refining EBITDA at $2B on Higher Crack Spreads

— EIA: U.S. Retail Diesel Prices Up 5.7cts on Week

— EIA: U.S. Gasoline Prices Rise Slightly on Week

NEWS:

API: Crude Stocks Soar After Storm; Gasoline Back to Build

U.S. crude oil stockpiles plunged on the week ended January 30, after production shut-ins driven by Winter Storm Fern, American Petroleum Institute (API) data showed on Tuesday (2/3).

Distillate balances also fell while gasoline stocks returned to builds last week, according to the same data.

U.S. commercial crude oil stocks plunged by 11.1 million bbl in the period of reference, registering a second consecutive week of declines. Oil traders had anticipated a stockpile build of 700,000 bbl instead.

The large crude draw reported by the API came on the back of Storm Fern, which led to production outages of approximately 2 million bpd in the Permian Basin in Texas and New Mexico, according to analysts.

The crude inventory draw for the profiled week was accompanied by a 1.4 million bbl tumble at the Cushing, Oklahoma delivery point for NYMEX West Texas Intermediate futures. In the prior week, Cushing inventories saw a 92,000 million bbl decline.

Distillate fuel oil stocks fell by 4.8 million bbl, compared to a 2 million bbl build the prior week.

Gasoline inventories surged by 4.7 million bbl week-over-week, compared to a 415,000 bbl drop last week.

Refining Constraints Keep West Coast Gasoline Prices Up

Gasoline prices on the U.S. West Coast remained the highest in the nation in January, extending a trend that defined fuel markets throughout last year as refinery constraints and distribution bottlenecks continued to shape regional pricing.
U.S. West Coast retail gasoline prices averaged $3.705 per gallon in January, which was below the $3.881 per gallon average price recorded in the same period of 2025, according to data from the U.S. Energy Information Administration.
In 2025, the West Coast posted the highest average retail gasoline price in the country at $4.09 per gallon, the same data showed.

By comparison, the Gulf Coast, home to the nation’s largest concentration of refining and storage capacity, recorded the lowest annual average at $2.68 per gallon.

Prices in other regions remained well below West Coast levels, averaging $3.02 per gallon in the Rocky Mountains, $2.94 per gallon in the Midwest, $2.89 per gallon in the Lower Atlantic, $3.12 per gallon in the Central Atlantic, and $2.99 per gallon in New England.
Market participants say that price disparity has remained intact in early 2026, driven largely by the West Coast’s structurally tight refining system and reliance on a limited number of major distribution hubs. Unlike the Gulf Coast, where excess capacity and extensive pipeline connectivity provide flexibility during disruptions, West Coast markets are more exposed to refinery outages, flaring events, and unplanned maintenance.
Recent EIA data show gasoline inventories in PADD 5 falling for three consecutive weeks through January, while crude oil and distillate balances also declined. At the same time, refinery operational issues, including repeated flaring events and announced capacity reductions, have heightened concerns around supply reliability heading deeper into the year.
Additional pressure has emerged in related refined product markets. Los Angeles jet fuel basis rose from flat levels to a 15cts premium to the front month ULSD futures contract in late January, underscoring how quickly prices can respond to tightening regional supply. Analysts say these moves reflect broader sensitivity across West Coast fuel markets, where inventory draws, reduced imports, and operational disruptions can rapidly translate into higher spot prices and wider basis volatility.
Supply concerns have remained in focus as refining capacity contracts in California. Phillips 66 halted fuel production at its 139,000 bpd Wilmington refinery at the end of 2025, while Valero said its 145,000 bpd Benicia refinery will continue producing gasoline through April 2026 before shifting supply to inventories and imports.

California Governor Gavin Newsom said the revised plan is intended to support supply stability and limit price disruptions as discussions continue.

U.S. Congress Votes to End Partial Govt. Shutdown

The U.S. Congress passed a funding package on Tuesday (2/3) to reopen the federal government from a partial shutdown, after a record 43-day shutdown just two months ago that paralyzed federal operations.

President Donald Trump is due to sign the latest legislation passed by the House of Representatives after a partisan fight over spending between Republican lawmakers backing him and their Democratic rivals.

The current deal funds most agencies through September but places the Department of Homeland Security (DHS) on a two-week leash amid Democratic demands for agency reforms. The DHS reprieve expires Feb. 13, potentially triggering another shutdown if lawmakers cannot resolve disputes over immigration and border patrol activity.

Marathon Q4 Refining EBITDA at $2B on Higher Crack Spreads

Marathon Petroleum Corp. reported Tuesday (2/3) refining and marketing (R&M) segment adjusted EBITDA of $1.997 billion in the fourth quarter of 2025,a fourfold  increase year-over-year,  due to higher crack spreads.

The rise in EBITDA was driven also by strong refining operational performance and commercial execution. 

The adjusted EBITDA of the R&M segment — excluding planned turnaround costs — was $7.15 bbl during the fourth quarter, above $2.03 bbl reported in the same quarter of a year earlier. 

R&M margin was $18.65 bbl for the fourth quarter, higher than the $12.93 bbl recorded a year ago. 

In the reference quarter, crude capacity utilization was 95%, resulting in total throughput of 3 million bpd. Refining operating costs were $5.70 bbl for the fourth quarter, compared to $5.26 bbl a year earlier. These higher costs reflected increased project-related expenses associated with turnaround activity and rising energy costs.

EIA: U.S. Retail Diesel Prices Up 5.7cts on Week

The U.S. Energy Information Administration reported Monday that retail diesel prices jumped 5.7 cents on the week to $3.681 a gallon, though still 2.1cts below year-ago levels.

The national average diesel price has not been higher since early December, when it stood at $3.758 gallon.

Diesel prices have trended higher lately, gathering momentum after the late January Winter Storm Fern that sharply boosted heating demand from the Midwest to Northeast.

East Coast (PADD 1) diesel prices climbed 6.9cts to $3.763 gallon, while remaining down 1.5cts from a year ago.

New England (PADD 1A) diesel prices recorded the biggest rise in relation to Storm Fern, surging 21.6cts on the week to $4.235. Year-on-year, it spiked 26.7cts.

Outside of the storm area, California diesel had the largest upward price move, climbing 11.8cts on the week to $4.830, while edging up 4.3cts on the year.

Central Atlantic (PADD 1B) diesel moved up 11.2cts to $3.988 while adding 0.2cts annually.

Midwest (PADD 2) diesel prices rose 4.6cts on the week to $3.625 gallon. Year-on-year, it was up 5.27cts.

Gulf Coast (PADD 3) diesel prices climbed 5.4cts on a weekly basis to $3.379 gallon, while falling by 1.6cts on the year.

Rocky Mountain (PADD 4) diesel prices increased 5.2cts on the week to $3.419, while dropping by an equal 5.2cts from a year ago.

West Coast less California diesel rose 3.8cts on a weekly basis to $3.982, while climbing 12.5cts on the year.

On a four-week rolling average basis, which smooths out weekly volatility, weekly average diesel prices stood at $3.5735, up 24.85cts from the prior four-week average.

The four-week average for California diesel prices was at $4.7033, increased by 41.62cts from the previous four-week average.

The four-week average for diesel prices in the West Coast region excluding California increased by 16.2cts, the most for the week, to $3.595 gallon, while declining by 0.5ct on the year.

The four-week average for diesel prices in the West Coast region, excluding California, increased by 25.095cts to $3.8455.

EIA: U.S. Gasoline Prices Rise Slightly on Week

The national average for retail regular gasoline climbed slightly in the week ended February 2, with prices rising in most major regions, data from the U.S. Energy Information Administration showed Tuesday (2/3).
The U.S. average for regular gasoline increased by 1.4cts to $2.867 gallon last week, while standing 21.5cts lower compared to the same week last year, the EIA’s weekly update on fuel pricing showed.
East Coast (PADD 1) gasoline prices rose by 2.1cts to $2.822 gallon in the week ended February 2, remaining 19.7cts below levels seen during the same period last year.
Within the East Coast, New England (PADD 1A) prices climbed 3.5cts week over week to $2.819 gallon, 17.7cts lower than the same week of 2025.
Central Atlantic (PADD 1B) gasoline prices jumped 5.5cts on a weekly basis to $2.940 gallon last week, 23.3cts below prices recorded during the corresponding week last year.
Lower Atlantic (PADD 1C) gasoline prices edged down by 0.5cts to $2.748 gallon in the profiled week, remaining 17.9cts lower than year-earlier levels.
Midwest (PADD 2) gasoline prices fell by 4.3cts to $2.650 gallon last week, 26.9cts below the same period last year.
Gulf Coast (PADD 3) prices declined by 1.1cts to $2.444 gallon, which was 26.5cts down year-over-year.
Rocky Mountain (PADD 4) gasoline prices spiked by 3.3cts to $2.569 gallon in the week ended February 2, this was 39.8cts down from year-ago levels.
West Coast (PADD 5) gasoline prices surged by 12.2cts to $3.827 gallon last week, while remaining 9.7cts lower than the same week last year.
Gasoline prices at West Coast less California climbed by 10.2cts to $3.415 gallon, standing 15cts below levels a year ago.