MARKETWIRE ALERTS

MARKETWIRE ALERTS 

MarketWire Afternoon News for March 26th:

Updated at 5:00 PM ET 

HEADLINES:

— Valero Port Arthur Refinery Sees Major Emissions Post-Fire

— BTS: N. American Jan. Transborder Freight Falls 5.5% on Yr

— EIA: Mideast Tanker Rates at 20-Yr High on Hormuz Closure

— Analysis: U.S. Crude Exports Set to Surge on Supply Crunch

— CEC: California Diesel Stocks Fall 216,000 Bbl on Week

— CEC: California Gasoline Stocks Fall 1.1 Million Bbl on Wk

— EIA: US NatGas Storage Reports 54 Bcf Weekly Withdrawal

— AAR: Petroleum Carloads Down 0.4% for Week Ended March 21

— Flint Hills Reports Flaring at Corpus Christi, TX, Plant

— Analysis: EIA Sees Product Exports Surge to 3-Mo High

— U.S. Rack ULSD Down 27.4cts; Gasoline Pulls Back

NEWS:

Valero Port Arthur Refinery Sees Major Emissions Post-Fire

Valero’s 435,000 bpd Port Arthur, Texas refinery released thousands of pounds of air pollutants over a 36-hour period after an unexpected release of process fluid in the facility’s Complex 2 triggered a fire and cascading upsets across multiple process units, according to an initial report filed with the Texas Commission on Environmental Quality (TCEQ).

The event began at approximately 6:25 pm on Monday (3/23) and concluded around 6:25 a.m.  on Wednesday (3/25), but the initial emissions report was filed on Tuesday (3/24).

On Monday, the fire and a consequent explosion prompted local authorities to issue a precautionary shelter-in-place order for nearby 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 TCEQ found no concerns, and both the shelter-in-place order and road closure were lifted.

However, affected units spanned Complexes 1 through 6 and included the Fluid Catalytic Cracker, Delayed Coking Unit, Hydrocracking Unit, multiple Sulfur Recovery Units, and several hydrotreaters, among others.

Reported emissions significantly exceeded permitted limits at several discharge points. The most notable exceedances included an estimated 15,644 pounds of particulate matter — more than 129 times the authorized limit — and 6,111 pounds of carbon monoxide from the DHT-243 fugitive emission point alone.

Across nine active flares, the Port Arthur refinery released a combined estimated 19,655 pounds of sulfur dioxide, 226 pounds of hydrogen sulfide, and 751 pounds of volatile organic compounds (VOCs), each far exceeding their respective hourly permit subcaps.

The refinery operator noted that while the event is substantially concluded, small amounts of intermittent emissions are continuing, and reported totals have been adjusted to reflect estimated future releases.

Quantities were determined using continuous emissions monitoring systems (CEMS), process analyzers, flow meters and engineering estimates.

The Port Arthur refinery processes heavy sour crudes and other products to produce gasoline, diesel, jet fuels and petrochemicals.

BTS: N. American Jan. Transborder Freight Falls 5.5% on Yr

North American transborder freight moved by all modes of transportation decreased 5.5% in January compared to the same month last year, the U.S. Bureau of Transportation Statistics said Thursday (3/26).

Total freight value for the month reached $126.9 billion, marking a downward trend following a 1.2% year-over-year increase reported in December, according to BTS records.

The January decrease reflected lower volumes in railways, pipelines, and water vessels, while air freight and trade with Mexico showed growth despite the overall decline. Transborder freight between the U.S. and Canada fell 18.4% to $52.8 billion, while shipments between the U.S. and Mexico rose 6.5% to $74.1 billion for the month.

Trucks moved $84.6 billion of freight in January, a 3.5% decrease from a year ago, while rail shipments dropped 19.6% to $12.2 billion during the same period.

Pipeline freight decreased 10.3% to $9.3 billion and vessel shipments fell 19.7% to $6.6 billion, while air freight value rose 28.1% to $7.9 billion compared to last year.

EIA: Mideast Tanker Rates at 20-Yr High on Hormuz Closure

Middle East crude tanker rates reached 20-year highs in March, hitting $16 bbl, as the closure of the Strait of Hormuz shuttered the region’s shipping artery for oil, data from the U.S. Energy Information Administration showed Thursday (3/26).

Typically ranging $1-$2 bbl for much of the past two decades, with the occasional spike above $6 bbl, tanker rates ballooned after the March 2 closure of the Hormuz, a vital chokepoint that handled 20 million bpd of petroleum liquids prior to the Iran war.

The EIA data showed rates for Very Large Crude Carriers (VLCCs) traveling from the Middle East to Asia eclipsed all historical marks since at least 2005.

The unprecedented spike came as physical risks, as well as soaring war insurance, essentially halted traffic on the Hormuz, trapping vessels already loaded with crude within the Persian Gulf.

The confinement has severely reduced global tanker availability, pushing shipping costs higher for all destinations including the U.S. Gulf Coast. Clean tanker and natural gas carrier rates have also seen significant increases as the maritime industry avoids the high-risk corridor.

Crude oil tanker rates from the Americas, especially the U.S. Gulf Coast, have also risen to record highs due to demand for crude and fewer vessels available for shipment, the EIA observed.

A 60-day waiver of the Jones Act for U.S. shipping has further shifted domestic tanker availability. The move permits the transport of energy and agricultural products between U.S. ports by international tankers – a practice previously forbidden since 1920.

Analysis: U.S. Crude Exports Set to Surge on Supply Crunch

Buying interest in U.S. crude oil could reach new highs, spurred by its lowest price against Brent in six years, as Asian refiners scramble to replace shut in flows from the Persian Gulf.

The Brent-WTI spread grew in the first days of the war before ballooning in mid-March once millions of barrels of production in the Middle East were forced shut by rapidly filling inventories as tanker traffic through the Strait of Hormuz came to a virtual standstill.

From a difference of $4.43 bbl on March 13 between WTI and Brent’s front-month contracts, the gap rocketed to $13.87 bbl by March 20 in U.S. crude’s favor. This occurred as international pricing for oil rapidly outgrew that for light sweet U.S. crude, which was unaffected by the supply crisis in the Middle East.

The U.S. Gulf Coast’s export capacity for oil will likely be stretched to limits in the coming weeks if WTI’s steep discount to Brent and other grades continues to hold.

U.S. crude exports typically follow a widening Brent-WTI higher with a four-week delay. This time around, the effect is likely to be seen sooner, as the flood of interest in U.S. crude is not a matter of bargain hunting, but of refiners securing supply to keep operations running. More than three times as many cargoes have been booked from the U.S. Gulf Coast to Asia this month compared to February, according to Platts.

Notwithstanding the current phenomenon, U.S. crude oil exports have remained far from all-time highs. Exports in 2025, in fact, recorded the first year-on-year decline since 2021, which itself was an exception from a decade and a half long trend. In December – the last month with available EIA data – they averaged 4.15 million bpd, 10% below the record-high 4.62 million bpd registered in December 2023.

Sustaining a pace above 5 million bpd for a prolonged period is feasible from a loading capacity perspective, but may push the capacity boundaries of pipelines transporting crude oil from the Permian to terminals on the U.S. Gulf Coast.

On average, these pipelines were already operating at more than 90% of capacity. Vast storage space in the region, however, will buy fast-paced exports some time before a logistical bottleneck emerges.

High crude prices are likely to drive domestic production higher. This, however, typically happens with a roughly three-month delay given the time needed from sealing the investment decision to extracting the first barrel.

High commercial inventories may help bridge this gap if international demand were to stay elevated, even as domestic refiners are ramping up operations ahead of the peak summer driving season.

CEC: California Diesel Stocks Fall 216,000 Bbl on Week

California Energy Commission data show statewide diesel inventories declined in the week ending March 20, as the agency now reports only statewide totals in its Weekly Fuels Report released on Thursday (3/26).
Statewide CARB diesel and other diesel fuel stocks fell by 216,000 bbl to 2.514 million bbl, and were 18% lower than same week previous year.
Statewide diesel production climbed by 69,000 bbl to 1.457 million bbl, though production remained 4% below last year’s levels.
The California Energy Commission is currently publishing only statewide diesel inventory and production data and is no longer providing regional Northern and Southern California breakdowns.

CEC: California Gasoline Stocks Fall 1.1 Million Bbl on Wk

California Energy Commission data show statewide gasoline inventories declined in the week ending March 20, as the agency now reports only statewide totals in its Weekly Fuels Report released on Thursday (3/26).
Statewide gasoline stocks, including CARB reformulated, non-California, and blending components, fell by 1.1 million bbl to 8.885 million bbl, and were 18% lower than last year.
Statewide gasoline production climbed by 146,000 bbl to 5.087 million bbl, though production remained 5% below last year’s levels.
The California Energy Commission is currently publishing only statewide gasoline inventory and production data and is no longer providing regional Northern and Southern California breakdowns.

EIA: US NatGas Storage Reports 54 Bcf Weekly Withdrawal

Energy Information Administration data released midmorning Thursday (3/26) show a 54 billion cubic feet withdrawal from U.S. natural gas storage to 1.829 trillion cubic feet in the week ended March 20.
Natural gas in U.S. storage is 5.2% higher than last year and 0.8% above the five-year average of 1.815 Tcf.
Regionally, EIA reports the East registered a 31 Bcf withdrawal to 271 Bcf, 9.1% less than a year ago and 16.1% lower than the five-year average.
Natural gas in storage in the Midwest decreased 23 Bcf week-on-week to 351 Bcf, a 4.4% deficit compared to the same week a year ago and 15.4% lower than the five-year average.
Mountain region natural gas in storage increased 3 Bcf, up 25.2% year-on-year to 67.2% above the five-year average.
South Central storage fell 2 Bcf to 745 Bcf, 3.5% more than in the same week last year and 5.3% below the five-year average.

AAR: Petroleum Carloads Down 0.4% for Week Ended March 21

The Association of American Railroads (AAR) reports that petroleum and petroleum product carloads totaled 10,223 during the week ended March 21, down by 0.4% from the same week a year ago.

Year-to-date, petroleum and petroleum products carloads totaled 119,800, up 6.9% from the corresponding period of the prior year, an AAR report published on Wednesday (3/25) showed.

Weekly traffic for the profiled week totaled 502,252, up 1.2% from the same week a year ago.

Total carloads for the week ended March 21 reached 227,583, higher by 1.2% from the same week of last year.

Weekly intermodal volume was 274,669 containers and trailers, up 1.2% from the corresponding week of the prior year.

Year-to-date, U.S. railroads reported carloads at 2,450,275, up 4.7% on the year.

Cumulative intermodal units were 3,029,315, down 0.4% from a year ago.

Total rail traffic for the first 11 weeks of the year was 5,479,590 carloads and intermodal units, up 1.8% on the year.

Flint Hills Reports Flaring at Corpus Christi, TX, Plant

Flint Hills reported an emission event caused by volatile organic compound (VOC) leak at its 350,000 bpd Corpus Christi West refinery, according to a report filed with Texas regulators on March 24.

The incident began at approximately 6:00 AM on March 24, 2026, after a routine water sample from the facility’s REX Cooling Tower revealed a leak into the cooling water system, according to a filing with the Texas Commission on Environmental Quality (TCEQ).

The initial report estimated that nearly 100 pounds of VOCs were released over a 24-hour period ending at 6:00 a.m. on March 25 — exceeding the facility’s authorized emission limit of zero pounds.

The event is currently listed as open.

Analysis: EIA Sees Product Exports Surge to 3-Mo High

U.S. refined product exports last week clocked in at the fastest pace since mid-December, Energy Information Administration data (EIA) shows. In the wake of the largest oil supply disruption in history leading refiners across Asia to curb production and halt exports, demand for U.S. refined products may pick up further in weeks to come.

The EIA data on weekly U.S. petroleum exports came Wednesday (3/25) amid tightening global supply. Refiners east of the Suez Canal have been forced to throttle production after the de-facto closure of the Strait of Hormuz shut in 10 to 15 million bpd of crude oil. 

China, a main fuel exporter in East Asia, was among the countries halting exports at the beginning of March to ensure domestic demand could be met. Fuel prices in the region, especially that of jet fuel and diesel, have since spiked.

The Hormuz strait closure is also affecting some 5 million bpd of refined product exports, mostly middle distillates. The Persian Gulf region, centered on the strait, has become a significant diesel supplier to Europe since the European Union banned product imports from Russia in February 2023. European diesel inventories, compared to crude oil stocks, are in a much weaker position to absorb a supply shock of this magnitude.

As of Wednesday, European gasoil futures have soared by 67% since the start of the U.S.-Israeli war on Iran, compared to NYMEX ULSD futures which appreciated by 47% in that time. This widening arbitrage window is likely to draw more diesel barrels from the U.S. Gulf Coast to Europe. At the same time, we can expect to see more clean cargos leaving for Asia from PADDs 1 and 3 as the region is suddenly short of around 1 million bpd in refined product supply.

Last week’s surge in U.S. refined exports – the 7.6 million bpd pace was the third-highest weekly number on record – came not on the back of finished fuels, but other oils such as light liquids from natural gas processing, condensates not classified as crude oil, unfinished oils, and a slew of fuel blending components.

U.S. exports appear to have room to add to the acceleration. Export capacity for clean products is far more limited than for crude oil, but finished fuel exports are still 10% off their pre-COVID highs. Over the past four weeks, finished gasoline exports clocked in at 942,000 bpd, up 17% year-on-year, and combined exports of distillate fuel oil and jet fuel were up 11% from the same period last year.

U.S. Rack ULSD Down 27.4cts; Gasoline Pulls Back

Wholesale rack prices for ultra-low sulfur diesel and gasoline moved lower Thursday (3/26), reversing part of Wednesday’s rebound, while futures markets turned higher again as geopolitical risks tied to the Iran war and fresh supply disruptions resurfaced.

Nationwide ULSD rack prices averaged $3.9014 gallon, down 27.41cts from Wednesday’s $4.1755 gallon, according to DTN data. Conventional unleaded gasoline rack prices averaged $3.0470 gallon, down 13.68cts from $3.1838 gallon. Premium gasoline was mixed, with most regions declining while the Midwest posted a slight increase.

ULSD racks declined across most regions Thursday, with the largest drops in PADD 3 and PADD 1. Gulf Coast ULSD fell 31.00cts to $3.9311 gallon, while East Coast prices dropped 27.44cts to $4.0820 gallon. Midwest values declined 21.63cts to $3.5241 gallon, maintaining the deepest discount nationally. PADD 4 fell 15.95cts to $4.1321 gallon. In contrast, West Coast ULSD edged higher by 3.86cts to $5.1907 gallon, extending its premium position.

Relative to the national ULSD rack average of $3.9014 gallon, PADD 5 held the widest premium at $1.2893 above the U.S. benchmark, followed by PADD 4 at 23.07cts above and PADD 1 at 18.06cts above. PADD 3 traded just slightly above the national average, while PADD 2 remained the deepest discount at 37.73cts below the benchmark.

On conventional unleaded gasoline racks, all regions moved lower Thursday. The Midwest posted the largest decline, falling 17.47cts to $2.5177 gallon. Gulf Coast prices dropped 11.75cts to $2.7914 gallon, while East Coast values declined 11.23cts to $2.7936 gallon. West Coast gasoline fell 11.93cts to $3.7711 gallon, maintaining the strongest premium, while PADD 4 recorded the smallest move, down 9.52cts to $3.1566 gallon.

Compared with the national gasoline average of $3.0470 gallon, PADD 5 remained the only region trading at a premium, at 72.41cts above the benchmark. All other regions held discounts, led by PADD 2 at 52.93cts below the national average, followed by PADD 3 at 25.56cts and PADD 1 at 25.34cts. PADD 4 remained modestly above the benchmark.

Premium gasoline rack prices were mixed. Most regions moved lower, though PADD 2 increased 8.43cts to $3.1581 gallon. West Coast premiums remained elevated at $4.1519 gallon, continuing to reflect tighter regional supply.

Futures prices moved higher Thursday morning, diverging again from physical rack markets. Front-month May NYMEX ULSD futures rose 22.08cts to $4.0313 gallon, while May RBOB gasoline futures increased 7.75cts to $3.0377 gallon. WTI crude for May delivery climbed $3.80 to $94.10 bbl.

The move higher in futures came as geopolitical risks remained unresolved. Iran signaled skepticism over potential peace talks with the United States, casting doubt on a near-term ceasefire, while continued missile exchanges in the region sustained uncertainty. At the same time, Russia was forced to halt oil exports from several ports following Ukrainian drone attacks, adding a new layer of supply disruption.

Those developments continue to pull futures higher on supply risk, while rack prices are adjusting more to short-term physical conditions after the sharp swings earlier in the week. The result has been a back-and-forth pattern, with futures reacting quickly to headlines and rack markets recalibrating as supply flows and buying activity shift day to day.