MARKETWIRE ALERTS

MARKETWIRE ALERTS 

MarketWire Afternoon News for March 3:

Updated at 5:00 PM ET 

HEADLINES:

— Jet Fuel Basis Spikes in NYH, Houston Amid Futures Rally

— LA Jet Fuel Basis Jumps 26.5cts on ULSD Rally

— API: Crude Stocks Rise 5.6M Bbl on Wk; Gasoline Down

— LA Jet Fuel Basis Jumps 26.5cts on ULSD Rally

— LA CARBOB Regular Basis Surges by 7cts on High Demand

— Trump Pledges U.S. Navy Escort for Tankers Crossing Hormuz

— U.S. Rack ULSD Prices Jump 26.8cts on Tuesday

— Analysis: Tanker Rates Soar Amid Hormuz Closure

— EIA: U.S. Gasoline Climbs 7.8cts on Week

— EIA: U.S. Retail Diesel Prices in 4th Straight Weekly Rise

— RFA: Year-Round E15 Justified by Iran War Oil Price Spike

NEWS:

Jet Fuel Basis Spikes in NYH, Houston Amid Futures Rally

The basis for jet fuel in the New York Harbor and Houston regional markets strengthened Tuesday (3/3) as the underlying April ULSD futures contract rose nearly 10% on expectations of global supply tightness tied to the Iran war.

The stronger basis was also supported by the Spring refinery maintenance season ahead of the summer driving season’s high demand.

U.S. Energy Information Administration data showed that refinery utilization nationwide dropped to 88.6% in the week ended February 20, from 91% in the prior week.

Basis for jet fuel on the Buckeye Pipeline in the New York Harbor rose 13cts to 8.75cts premium to April ULSD futures on the New York Harbor.

At the Houston origin of the Colonial Pipeline, jet fuel traded at a 6cts premium to the April futures contract, rising by 12.25cts from the previous session.

LA Jet Fuel Basis Jumps 26.5cts on ULSD Rally

Basis for prompt Los Angeles Jet fuel surged by 26.5cts on Tuesday (3/2) to a 42.5cts premium over April NYMEX ULSD futures, following a rally in futures market that lifted ULSD.

Domestic supply tightness also supported spot market prices as refining utilization in the West Coast (PADD 5) dropped to 81.1% in the week ending February 20 from 87.4% the prior week, according to most recent data from Energy Information Administration.

Lower refining rates in PADD 5 reflect the recent closure of Phillips 139,000 bpd Los Angeles, California, refinery and the upcoming shutdown of Valero’s 145,000 bpd, Benicia California, refinery, with operations set to cease in late April.

API: Crude Stocks Rise 5.6M Bbl on Wk; Gasoline Down

The American Petroleum Institute (API) cited a second consecutive weekly build in commercial crude oil stocks for last week in a report Wednesday (3/3) that also noted higher balances for distillates versus a drop in gasoline.

Ther API said commercial crude oil stocks rose by 5.6 million bbl during the week ended February 27, adding to the 11.4 million bbl jump from the week prior.

Separately, stocks at the Cushing, Oklahoma delivery point for NYMEX WTI futures, climbed by 1.5 million bbl, aligning with the latest crude build. In the previous week, Cushing stocks went up by 1.79 million bbl.

Gasoline balances declined by 3.3 million bbl, extending the previous weekly drop of 1.53 million bbl.

Distillates supply rose by 516,000 bbl after a prior drop of 2.77 million bbl.

LA Jet Fuel Basis Jumps 26.5cts on ULSD Rally

Basis for prompt Los Angeles Jet fuel surged by 26.5cts on Tuesday (3/2) to a 42.5cts premium over April NYMEX ULSD futures, following a rally in futures market that lifted ULSD.

Domestic supply tightness also supported spot market prices as refining utilization in the West Coast (PADD 5) dropped to 81.1% in the week ending February 20 from 87.4% the prior week, according to most recent data from Energy Information Administration.

Lower refining rates in PADD 5 reflect the recent closure of Phillips 139,000 bpd Los Angeles, California, refinery and the upcoming shutdown of Valero’s 145,000 bpd, Benicia California, refinery, with operations set to cease in late April.

LA CARBOB Regular Basis Surges by 7cts on High Demand

Basis for reformulated gasoline California Air Resources Board fuel standards rallied Tuesday (3/3) in Los Angeles from where it was last seen trading on Monday (2/3). Prompt Los Angeles CARBOB regular basis climbed by 7cts to a 29cts premium to April NYMEX RBOB futures after a trade was confirmed at that level. Los Angeles CARBOB premium basis spiked in tandem by 7cts to a 29cts premium.

The sharp jump in gasoline differentials in Los Angeles comes with the ongoing start up/shut down flaring at PBF Energy’s 166,000 bpd Torrance refinery, scheduled to end Thursday (3/5) at 11:59 p.m. PT. adding to supply concerns in California’s spot market.

Trump Pledges U.S. Navy Escort for Tankers Crossing Hormuz

U.S. President Donald Trump pledged on Tuesday (3/3) U.S. navy protection for oil tankers needing to cross the Strait of Hormuz after Iran effectively shut the major waterway for petroleum shipments amid its war with the United States and Israel.

“If necessary, the United States Navy will begin escorting tankers through the Strait of Hormuz,” the president said in a post on his Truth Social media platform, pledging U.S. support to ensure free flow of energy.

Tanker traffic through the Strait of Hormuz remained paralyzed Tuesday as Iran warned vessels to avoid the vital chokepoint. The move follows missile strikes on at least five commercial ships since the conflict began.

Charter rates for crude and fuel oil tankers soared to record highs as hundreds of vessels remained stranded. The blockade continues to threaten a fifth of the world’s seaborne petroleum trade.

U.S. Rack ULSD Prices Jump 26.8cts on Tuesday

Wholesale rack prices for gasoline and diesel across the United States opened sharply higher Tuesday, extending gains from the prior session as supply concerns tied to escalating tensions in the Middle East continued to reverberate across physical and futures markets.

Nationwide ultra-low sulfur diesel (ULSD) rack prices were at $3.0042 gallon, up 26.82cts from Monday’s $2.7360 gallon, according to DTN data.

Meanwhile, conventional unleaded gasoline rack prices were heard at an average of $2.5050 gallon, an increase of 8.28cts compared to Monday’s national average of $2.4222 gallon.

On gasoline racks, PADD 5 posted the largest increase, rising 11.03cts to $2.9480 gallon, followed by PADD 4, up 9.00cts to $2.1376 gallon. PADD 1 climbed 8.04cts to $2.1246 gallon, while PADD 3 increased 6.67cts to $2.0916 gallon and PADD 2 rose 5.67cts to $2.0307 gallon, the same data showed.

Compared to the national average of $2.5050 gallon, all regions traded at a discount except for PADD 5, which stood at a 44.30cts premium to the U.S. average. The widest discount was seen in PADD 2, at 47.43cts below the national benchmark, followed by PADD 3 at a 41.34cts discount, PADD 4 at 36.74cts below, and PADD 1 at a 38.04cts discount.

ULSD racks also moved higher across all five PADDs, with the sharpest increase seen in PADD 1, where ULSD rose 28.85cts to $3.0798 gallon, followed by PADD 3, up 28.15cts to $2.8892 gallon. PADD 5 climbed 26.94cts to $3.4580 gallon, while PADD 2 and PADD 4 rose 23.81cts and 20.10cts, respectively.

Relative to the national ULSD rack average of $3.0042 gallon, PADD 5 held the strongest premium at 45.38cts above the U.S. average, while PADD 1 traded at a 7.56cts premium. The PADDs 2, 3 and 4 were at 9.98cts, 11.50cts and 23.97cts below the national average, in that order.

The front-month NYMEX ULSD futures contract rose by $0.2750 to $3.1754 gallon, a 9.30% increase on the session. The April NYMEX RBOB contract increased by $0.0871 to $2.4577 gallon, up 3.64%.

Analysis: Tanker Rates Soar Amid Hormuz Closure

The outbreak of war between the U.S. and its allies and Iran has left hundreds of tankers stranded on both sides of the Strait of Hormuz, propelling some dirty tanker rates to the highest on record.

With a sizable chunk of the global crude oil tanker fleet now idle, charter rates for mid-sized tankers carrying crude and fuel oil from the Middle East jumped to their highest in close to six years.

In addition to the tanker supply shock, on-land inventories are quickly filling up amid the sudden loss of takeaway capacity, leading to a spike in demand for 2-million-barrel-capacity Very Large Crude Carriers (VLCCs) for offshore storage. Costs for dirty VLCCs from the Middle East to Asia have jumped to record highs, with some up 900% since the beginning of the year.

Charter rates for refined product tankers have also surged from the closure of the world’s most important oil transit point. Clean tanker costs from the Persian Gulf have doubled over the past two weeks alone.

The ripple effects spread through the global tanker market and was also felt on U.S. shores. Rates for dirty tankers from the U.S. Gulf Coast to Europe are up 60% from the beginning of the year. As Asian refiners are scrambling to replace their main source of crude oil, shipping costs from PADD 3 to East Asia have jumped to the highest on record.

Freight rates are unlikely to normalize any time soon as signs are pointing to a prolonged war growing in scope. Ten countries have so far suffered attacks since Saturday, and U.S. allies in the region who were targeted by Iranian drones and missiles are considering joining the U.S. and Israel in their war against Iran. U.S. President Donald Trump on Monday said he expected operations to last four to five weeks.

EIA: U.S. Gasoline Climbs 7.8cts on Week

The national average for retail regular gasoline increased in the week ended March 2, with broad gains across major regions, data from the U.S. Energy Information Administration showed Tuesday (3/3).
The U.S. average for regular gasoline surged by 7.8cts to $3.015 gallon last week, while standing 6.3cts lower compared to the same week last year, the EIA’s weekly update on fuel pricing showed.
East Coast (PADD 1) gasoline increased by 4.8cts to $2.882 gallon in the week ended March 2, while staying 9.5cts lower than the same period last year.

Within the East Coast, New England (PADD 1A) increased by 2.6cts to $2.878 gallon week-over-week, while remaining 9.9cts below the same week of 2025.

Central Atlantic (PADD 1B) gasoline prices increased by 0.5cts on a weekly basis to reach $2.967 gallon last week, while staying 15.1cts lower than the same week of last year.

Lower Atlantic (PADD 1C) gasoline prices climbed by 8.2cts to $2.830 gallon in the profiled week, while remaining 5.9cts lower than year-ago levels.
Midwest (PADD 2) prices climbed by 11.9cts to $2.794 gallon last week, while staying 8.8cts down compared to the same period of previous year.

Prices for the same product at the Gulf Coast (PADD 3) increased 11.2cts to $2.644 gallon and was up 0.8cts from the previous year.
Rocky Mountain (PADD 4) gasoline increased by 9.6cts to $2.758 gallon, while staying 20.6cts lower year-over-year.

West Coast (PADD 5) gasoline prices rose by 4.9cts on the week and 1.9cts on the year to $4.160 gallon. Gasoline prices at West Coast less California climbed 6.8cts on a weekly basis and 8.0cts for the year to $3.791 gallon.

EIA: U.S. Retail Diesel Prices in 4th Straight Weekly Rise

The U.S. Energy Information Administration reported Tuesday (3/3) that retail diesel prices rose for a fourth consecutive week, climbing 9.8cts during the week ended March 2 to average $3.897 gallon, while increasing 26.2cts on the year.

The weekly increase was the largest since the week ended June 23, 2025, when prices jumped 20.4cts.

Diesel prices trended higher for a fourth consecutive week, with increases recorded across all major regions.

East Coast diesel prices rose by 8.1cts to $3.924 gallon. For the year, this PADD 1 region showed a 18.2cts increase.

New England diesel prices climbed by11.3cts to $4.314 gallon while climbing 19.6cts on the year.

In the latest week, the biggest diesel weekly appreciation was in the Gulf Coast. This PADD 3 region had a 10.9cts rise on the week and a 25.5cts surge on the year to average at $3.598 gallon.

Diesel prices in the Central Atlantic witnessed a 1.8cts rise on the week to average at $4.112 gallon. For the year, the PADD 1B region saw a 19.6cts climb.

In the Lower Atlantic area, diesel averaged $3.808 gallon, with the PADD 1C region up 10cts on the week and 16.5cts on the year.

In the Midwest, or PADD 2 region, gasoline perked up by 9cts on the week and 33.7cts on the year to average at $3.888 gallon.

In the Rocky Mountain area, diesel prices rose 5.4cts on the week and 25.9cts on the year to average at $3.737 gallon.

West Coast diesel saw a 6.9cts increase on the week to average at $4.534 gallon. For the year, the PADD 5 witnessed a surge of 23.1cts.

West Coast less California diesel climbed 8.8cts on a weekly basis to $4.138 gallon, while rising 30.9cts on the year.

California diesel itself rose 4.6cts on the week and 14cts on the year to average at $4.99 gallon.

RFA: Year-Round E15 Justified by Iran War Oil Price Spike
The Renewable Fuels Association (RFA) on Tuesday (3/3) renewed its call for year-round U.S. legislation of E15, saying gasoline with 15% ethanol will help consumers alleviate higher fuel costs likely from the Iran war-triggered oil price spike.
“We need to take every action we can to insulate our nation from these geopolitically induced price spikes at the pump, and an easy solution is to increase our use of domestically produced ethanol,” RFA President and CEO Geoff Cooper said in a statement.
Crude oil prices hit multi-month highs this week on disruptions to Middle East supplies in the wake of the Iran conflict. The RFA noted that 314 million bbl of oil consumed by the U.S. last year was from OPEC countries, a volume it argued could be halved by national E15 adoption.
Year-round E15 legislation seeks to permanently remove summertime volatility restrictions that currently ban the 15% blend in most of the U.S. due to concerns that higher Reid Vapor Pressure contributes to smog.
While there is bipartisan support in Congress to approve year-round use of E15, the Environmental Protection Agency has struggled to balance the demands of Midwestern states for regional autonomy against refiners’ concerns over the potential for localized fuel supply disruptions and increased infrastructure costs.