MARKETWIRE ALERTS

MARKETWIRE ALERTS 

MarketWire Afternoon News for February 23rd:

Updated at 5:00 PM ET 

HEADLINES:

— USGC, NYH Jet Fuel Basis Fall as ULDS Futures Rise

— Oklahoma Group 3 Gasoline Basis at 1-Month High

— EIA: 4.6 GW of U.S. Natural Gas Capacity to Retire in 2026

— Dallas Fed: Texas Feb. Manufacturing Up Amid Tariff Woes

NEWS:

USGC, NYH Jet Fuel Basis Fall as ULDS Futures Rise

Basis for jet fuel in the US Gulf Coast and New York Harbor markets weakened on Monday (2/23), as the March futures on the New York Mercantile Exchange (NYMEX) climbed 3.57% on the day on firm buying interest.

Jet fuel basis at the Houston origin of the Colonial Pipeline in the Gulf Coast spot market, fell 7.7cts to be assessed at 24.75cts discount against the March NYMEX ULSD futures contract amid bids heard at 25cts and offers at 22.50cts levels.

Meanwhile, basis for jet fuel moved on the Buckeye Pipeline in the New York Harbor spot market was assessed at a 22.5cts discount over the ULSD futures contract for March delivery, down by 9cts from the previous trading session.

NYH jet fuel basis dropped despite the Energy Information Administration reporting last week that inventories in PADD 1 decreased by 400,000 bbl to 8.5 million bbl during the week ended February 13, compared with 8.9 million bbl reported year-over-year. In contrast, jet fuel stocks in PADD 3 climbed by 100,000 bbl  in the same period to 14 million bbl. This was 700,000 bbl higher than the volume reported the prior year.

Oklahoma Group 3 Gasoline Basis at 1-Month High

Basis for Oklahoma Group 3 suboctane gasoline strengthened sharply Monday (2/23), lifting differentials to their highest level in more than one month as traders reported higher buying interest against limited selling.

The differential for Group 3 regular suboctane, also known as V-grade, advanced 6.25cts on the session to trade at a 14.5cts discount to March NYMEX RBOB futures, compared with a 20.75cts differential in the prior session. The move marked the strongest level since January 20, when the discount was assessed at a 15cts discount to the front-month contract, according to DTN data.

There were stronger bids for Group 3 gasoline against lighter offer-side participation, according to a person familiar with the Midwest gasoline market. That dynamic allowed discounts versus futures to narrow.

The Group 3 market often exhibits heightened volatility because it possesses a smaller refining footprint compared to the high-volume Chicago, Buckeye, and Wolverine systems.

This structural concentration means even modest shifts in buying interest can disproportionately impact basis values relative to the broader Midwest complex.

The strength in Group 3 did not extend across the broader Midwest gasoline complex.

Chicago CBOB basis, including Buckeye and Wolverine, was assessed at a 33cts discount to March NYMEX RBOB futures, weakening 1ct on the day and signaling continued softness in the Great Lakes region.

Distillate basis also softened across the Midwest. Chicago ULSD widened 3.50cts to a 17cts discount to March NYMEX ULSD futures. Buckeye ULSD weakened 2cts to a 12cts discount, in line with Wolverine ULSD, which held at a 12cts discount to the front-month ULSD futures contract.

EIA: 4.6 GW of U.S. Natural Gas Capacity to Retire in 2026

Some 4.6 GW of U.S. natural gas-fired capacity is scheduled for retirement this year, representing nearly 1% of the nation’s operating natural gas fleet, an analysis by the Energy Information Administration (EIA) showed Monday (2/23).

The bulk of the retiring units consists of older, less efficient steam turbines, the EiA said.

The largest individual retirements will occur at the AES Alamitos and Huntington Beach plants in California, which have a combined capacity of 1,368 MW.

Similar shutdowns are expected in Illinois and Texas, and in Pennsylvania, which will go with the retirement of the Eddystone gas-fired plant delayed since last year.

The aging units will be replaced by modern combined-cycle plants to support ongoing grid demand, the EIA added.

Dallas Fed: Texas Feb. Manufacturing Up Amid Tariff Woes

Texas manufacturing extended its growth in February even as tariff uncertainty and tightening cash flows created headwinds for many firms.

The production index in the second largest U.S. state advanced to 12.5 this month from January’s 11.2, while manufacturers reported persistent trade barriers and declining consumer spending.

One metal producer announced the closure of a family business active since 1958, citing customers who weren’t buying or paying on time.

The general business activity index edged into positive territory at 0.2 from a prior -1.2, indicating broader conditions had stabilized despite growing structural challenges.

Capacity utilization climbed five points to 11.8, while new orders remained essentially unchanged at 11.1.

Input cost pressures eased slightly to 31.7, but the wages and benefits index surged nearly 15 points to 31.9 as labor costs accelerated.

The employment index moderated to 7.5, yet the hours worked index rose more than five points to 6.1, signifying longer workweeks for existing staff.

Future production expectations grew more optimistic, with the six-month outlook index rising five points to 34.3 as some firms anticipate continued demand strength.

“Tariffs still have an impact on our business and remain a big unknown,” noted one manufacturer regarding the ongoing burden of trade policy.

Another respondent highlighted that consumers were being negatively impacted by the economy, observing that direct-to-customer spending has declined considerably in recent months.

“The federal and state policy issues have frozen us,” added a food manufacturing representative, echoing the sentiment of widespread regulatory and geopolitical unease.

A machinery manufacturer remained an outlier in optimism, stating that new large opportunities have finally allowed the firm to reach full production capacity.