MARKETWIRE ALERTS

MARKETWIRE ALERTS 

MarketWire Afternoon News for March 24th:

Updated at 5:00 PM ET 

HEADLINES:

— API: Crude Stocks Up 2.3M Bbl, Rise 4th Week in Row

— Valero’s Port Arthur Refinery Fire Extinguished

— EIA: U.S. Retail Gasoline Average Climbs 24.1cts on Week

— EIA: U.S. Diesel Prices Rise Further, Up 30.4cts on Week

— Shelter-in-Place Lifted After Port Arthur Refinery Blast

— U.S. Rack ULSD Dips 46.1cts; Gasoline Falls 24.3cts

NEWS:

API: Crude Stocks Up 2.3M Bbl, Rise 4th Week in Row

The American Petroleum Institute (API) has cited a fourth consecutive weekly build in commercial crude oil stocks in its reading for the week ended March 20, energy market participants with access to the data told DTN on Tuesday (3/24).

The API reported that commercial crude oil stocks rose by 2.3 million bbl for the week in review, according to the traders who saw the data. That extended a string of builds that included increases of 6.556 million bbl, 5.6 million bbl and 11.4 million bbl over the prior three weeks,

At the Cushing, Oklahoma delivery point for NYMEX WTI futures, crude inventories climbed by 4 million bbl, according to the data.

Gasoline inventories increased by 500,000 bbl, following a 3.3 million bbl draw reported in the previous week.

Distillate fuel supply rose by 1.4 million bbl after a modest build of 516,000 bbl in the prior reporting period.

Valero’s Port Arthur Refinery Fire Extinguished

A unit fire at Valero’s 435,000-bpd Port Arthur, Texas refinery has been brought under control, the company confirmed on Tuesday (3/24), with all personnel accounted for and no recordable injuries reported.

“The unit fire at Valero’s Port Arthur, Texas, refinery is essentially out,” confirmed the company in a statement to DTN.

The fire prompted local authorities to issue a precautionary shelter-in-place order for nearby residents on Monday (3/23) and implement a partial road closure while emergency teams worked to contain the blaze and assess air quality in the surrounding area.

Air monitoring conducted jointly by Valero, the Port Arthur Fire Department, and the Texas Commission on Environmental Quality (TCEQ) found no concerns, and both the shelter-in-place order and road closure have since been lifted.

The cause of the fire remains under investigation and the unit affected was not disclosed.

Valero’s Port Arthur refinery has 770 employees and processes heavy sour crude oil and other feedstocks into gasoline, diesel, and jet fuel, according to the company’s website.

EIA: U.S. Retail Gasoline Average Climbs 24.1cts on Week

The national average for retail regular gasoline moved higher in the week ending March 23, with increases recorded across all major regions, data from the U.S. Energy Information Administration(EIA) showed Tuesday (3/24).
The U.S. average for regular gasoline climbed by 24.1cts to $3.961 gallon in the week ending March 23, standing 84.6cts higher than last year, the EIA’s weekly update on fuel pricing showed.
East Coast (PADD 1) gasoline climbed by 20.8cts to $3.785 gallon in the week ending March 23, standing 82.4cts higher than last year.
Within the East Coast, New England (PADD 1A) gasoline increased by 18.9cts to $3.727 gallon week over week, standing 79.4cts higher than last year. Central Atlantic (PADD 1B) gasoline climbed by 24.3cts to $3.855 gallon in the profiled week, 78.0cts higher than last year.
Lower Atlantic (PADD 1C) gasoline rose by 19.0cts to $3.756 gallon in the profiled week, 85.9cts higher than last year. Midwest (PADD 2) gasoline grew by 29.1cts to $3.684 gallon last week, 66.4cts higher than the year prior.
Prices for the same product at the Gulf Coast (PADD 3) climbed by 19.2cts to $3.604 gallon, 86.4cts higher than last year. Rocky Mountain (PADD 4) gasoline rose by 21.3cts to $3.850 gallon, 80.7cts higher than the previous year.
West Coast (PADD 5) gasoline prices spiked by 27.5cts to $5.262 gallon, 120.7cts higher than last year. Gasoline prices at West Coast less California climbed by 27.6cts to $4.797 gallon, 113.9cts higher year over year.

EIA: U.S. Diesel Prices Rise Further, Up 30.4cts on Week

The U.S. Energy Information Administration reported Tuesday (3/24) that retail diesel prices rose for a seventh consecutive week, climbing 30.4 cents during the week ended March 23 to average $5.375 gallon, while increasing $1.808 compared with the same time last year.

Diesel is up $1.516 gallon since the week ended February 9, as strength in global distillate markets tied to ongoing geopolitical risk and tight supply conditions continues to push retail prices higher across the U.S.

East Coast diesel prices rose 37.5cts to $5.480 gallon. Compared with the same time last year, this PADD 1 region showed a $1.805 gallon increase.

New England diesel prices rose 52.3cts to $5.759 gallon. This PADD 1A region climbed $1.772 versus the same period last year.

The Central Atlantic witnessed a 43.3cts rise on the week. Prices in the PADD 1B region averaged $5.629 gallon, climbing $1.757 compared with the previous year.

Diesel prices in the Lower Atlantic averaged $5.395 gallon. This PADD 1C region reflects a 33.8cts increase on the week and $1.826 gallon rise from the same time last year.

In the Midwest, diesel prices rose 19cts on the week. The PADD 2 region averaged $5.160 gallon, which was $1.669 gallon higher than levels seen a year earlier.

On the Gulf Coast, diesel climbed 29.9cts on the week to $5.134 gallon. Compared with the prior year, prices in PADD 3 were up $1.869 gallon.

Rocky Mountain diesel saw a 37.8cts increase on the week to $5.174 gallon. The PADD 4 region posted a $1.759 gallon increase versus the same time last year.

West Coast diesel prices rose 45.4cts on the week to average $6.310 gallon. Compared with the previous year, the PADD 5 region advanced by $2.081 gallon.

West Coast less California diesel climbed 46.6cts on a weekly basis to $5.826 gallon. This represented a $2.072 gallon increase from the same time last year.

California diesel itself rose 44.2cts on the week to $6.870 gallon. Prices in the state remain the highest in the nation, sitting $2.094 gallon above levels seen at the same time last year.

Shelter-in-Place Lifted After Port Arthur Refinery Blast

Port Arthur Police and Fire officials announced Tuesday (3/24) that the shelter-in-place order for residents on the West Side of Port Arthur has been lifted following the explosion of a unit at Valero’s 435,000 bbl Port Arthur, Texas, refinery on Monday.

The unit affected by the explosion was not disclosed.

The Port Arthur refinery has 770 employees and processes heavy sour crude oil and other feedstocks into gasoline, diesel, and jet fuel, according to Valero’s website.

Valero did not immediately respond to a request for comments.

U.S. Rack ULSD Dips 46.1cts; Gasoline Falls 24.3cts

Wholesale rack prices for ultra-low sulfur diesel and gasoline moved sharply lower Tuesday (3/24), reversing Monday’s increases, even as futures markets moved higher on renewed geopolitical tensions tied to the Iran war.

Nationwide ULSD rack prices averaged $3.8915 gallon, down 46.08cts from Monday’s $4.3523 gallon, according to DTN data. Conventional unleaded gasoline rack prices averaged $3.0380 gallon, down 24.33cts from $3.2813 gallon. Premium grade gasoline also declined across all regions.

ULSD racks fell across all regions Tuesday, with the largest declines in PADD 1 and PADD 2. East Coast ULSD dropped 48.96cts to $4.0952 gallon, while Midwest prices declined 46.19cts to $3.4834 gallon. Gulf Coast values fell 45.09cts to $3.8917 gallon, essentially in line with the national average. West Coast prices declined 40.83cts to $4.7913 gallon, maintaining the strongest regional premium, while PADD 4 fell 22.74cts to $4.1606 gallon.

Relative to the national ULSD rack average of $3.8915 gallon, PADD 5 held the widest premium at 89.98cts above the U.S. benchmark, followed by PADD 4 at 26.91cts above. PADD 1 also remained above the national average, while PADD 3 was effectively flat. PADD 2 continued to hold the deepest discount, at 40.81cts below the benchmark.

On conventional unleaded gasoline racks, all regions moved lower on Tuesday. PADD 1 posted the steepest decline, falling 25.46cts to $2.7224 gallon. PADD 5 dropped 22.55cts to $3.7569 gallon, while PADD 3 declined 22.66cts to $2.7111 gallon. PADD 2 fell 22.47cts to $2.5734 gallon, maintaining the deepest discount nationally, while PADD 4 recorded the smallest move, down 10.38cts to $3.2059 gallon.

Compared with the national gasoline average of $3.0380 gallon, PADD 5 remained the only region at a premium, at 71.89cts above the benchmark. All other regions held discounts, led by PADD 2 at 46.46cts below the national average, followed by PADD 3 at 32.69cts and PADD 1 at 31.56cts. PADD 4 remained modestly above the benchmark.

Premium gasoline rack prices declined across all regions, broadly in line with conventional gasoline. The Midwest posted the largest drop, down 27.93cts to $3.2073 gallon, while the East Coast fell 26.72cts to $3.3537 gallon. West Coast premiums remained elevated at $4.1359 gallon despite a 24.61cts decline.

Futures prices moved higher Tuesday morning, diverging from physical rack markets. Front-month May NYMEX ULSD futures increased 16.82cts to $3.9214 gallon, while May RBOB gasoline futures rose 11.63cts to $3.0437 gallon. WTI crude for May delivery advanced $3.11 to $91.24 bbl.

The move higher in futures followed escalating geopolitical tensions after Iran denied U.S. claims of renewed negotiations, while Israeli and Iranian attacks continued, reintroducing risk premium into crude and refined product markets.

The sharp decline in rack prices despite higher futures suggests physical markets are correcting after last week’s rally, with wholesale prices adjusting lower as supply conditions stabilize and buying interest softens following the surge.