MARKETWIRE ALERTS

MARKETWIRE ALERTS 

MarketWire Afternoon News April 16th:

Updated at 5:00 PM ET 

HEADLINES:

— LA Jet Fuel Basis Rises 10cts to $1 Premium

— EIA Proposes Changes to Key Supply Surveys for 2026

— EIA: U.S. Crude Imports from Canada, Middle East Plunge

— USGC Jet Fuel Jumps as Europe Supply Said to Last 6 Weeks

— EIA: US NatGas Storage Reports 59 Bcf Weekly Injection

— Chicago Fed: Activity Edges Higher; Prices Rise

— CEC: California Gasoline Stocks Climb 232,000 Bbl on Week

— CEC: California Diesel Stocks Rise 89,000 Bbl on Week

— U.S. Rack ULSD Up 7.7cts; Gasoline Edges Higher

NEWS:

LA Jet Fuel Basis Rises 10cts to $1 Premium

The basis for prompt Los Angeles jet fuel strengthened by 10cts on Thursday (4/16), trading at a $1 premium above May NYMEX ULSD futures, as demand for the product remained firm amid tightening regional supply.
The increase reinforced the higher trend seen of late in Los Angeles jet fuel. Aside from Thursday’s 10cts boost, the basis rose 32cts on Tuesday.

Market participants cited a pickup in buying interest and constrained supply availability as key drivers behind the back-to-back gains.
Support for jet fuel values has also been tied to ongoing refinery capacity reductions in California. The recent shutdown of Phillips 66’s 139,000 bpd Los Angeles refinery has already removed significant production from the region, while Valero’s 145,000 bpd Benicia refinery is scheduled to cease operations later in April, further tightening supply expectations along the West Coast.

EIA Proposes Changes to Key Supply Surveys for 2026

The U.S. Energy Information Administration is proposing updates to its petroleum supply survey framework beginning in 2026, according to a notice outlining changes to several key data collection forms.

The proposed revisions affect the EIA-804 Weekly Imports Report, along with monthly surveys, including the EIA-810 Refinery Report, EIA-813 Crude Oil Report, EIA-815 Bulk Terminal Report and the EIA-819 covering biofuels and related products.

The agency did not immediately provide detailed methodology changes but indicated the updates are intended to modify how petroleum supply data is collected across these reports.

EIA: U.S. Crude Imports from Canada, Middle East Plunge

U.S. crude oil imports from Canada and Saudi Arabia saw significant declines in the week ended April 10, while shipments from Venezuela, Colombia and Ecuador moved higher, weekly Energy Information Administration (EIA) data showed.

Canadian crude imports tumbled 751,000 bpd to 3.52 million bpd during the referenced week, down from 4.27 million bpd in the previous week to April 3, according to the EIA data issued Wednesday (4/15). The latest figure was nearly identical to the 3.53 million bpd imported from Canada during the same week one year prior.

Venezuela reported an increase of 91,000 bpd to 412,000 bpd, while Colombia shipments surged to 130,000 bpd from zero during the prior week.

In contrast, Middle East arrivals faced sharp reductions as the Iran war continued to impact arrivals from that region. Imports from Saudi Arabia plunged 340,000 bpd to 249,000 bpd, though this remained significantly higher than the 69,000-bpd recorded a year ago.

Iraqi arrivals declined by 11,000 bpd to 109,000 bpd. This figure was 12% lower than the 136,000-bpd reported during the same period last year.

Mexico shed 20,000 bpd to land at 145,000 bpd in the reference week, continuing a downward trend from the 278,000 bpd seen a year prior. Ecuador added 68,000 bpd after posting zero the week before, while imports from Libya and Nigeria fell to zero.

USGC Jet Fuel Jumps as Europe Supply Said to Last 6 Weeks

U.S. Gulf Coast jet fuel rallied more than 2% Thursday (4/16) on global supply concerns after the International Energy Agency (IEA) warned that Europe could face a critical shortage within weeks if Middle East disruptions persist.

IEA Executive Director Fatih Birol, in an interview with the Associated Press, said Europe had “maybe six weeks or so” of jet fuel left, if flows through the Strait of Hormuz are not restored. The caution heightens the prospect of further flight disruptions and scramble for supply in a 2026 first quarter already marked by stress for global carrier operations.

U.S. Gulf Coast jet fuel prices climbed to $3.9823 gallon Thursday morning, up 9.41cts on the day, and more than $1.58 since the end-February outbreak of the Iran war, which led Tehran to curtail oil tanker movements on the Hormuz strait.

Blockade of the waterway — a transit point for roughly 20% of global oil flows — have already begun to impact middle distillate markets, particularly jet fuel, which relies heavily on medium sour crude streams originating from the Middle East. Disruptions and rerouting of these flows have tightened availability of jet fuel globally, with the effects increasingly reflected in U.S. Gulf Coast pricing.

While U.S. exports of jet fuel eased week-over-week, demand for barrels remains firm. Data from the U.S. Energy Information Administration, released Wednesday (4/15) for the week ended April 10 showed jet fuel exports at 260,000 bpd, down from 442,000 bpd the prior week, but still 130,000 bpd above the same week last year.

With Europe heavily reliant on imports, any prolonged disruption in Middle East supply is expected to draw additional volumes from the Atlantic Basin, including the U.S. Gulf Coast, keeping upward pressure on prices.

EIA: US NatGas Storage Reports 59 Bcf Weekly Injection

Energy Information Administration data released midmorning Thursday (4/16) show a 59 billion cubic feet injection into U.S. natural gas storage to 1.97 trillion cubic feet in the week ended April 10.
Natural gas in U.S. storage is 6.8% higher than last year and 5.8% above the five-year average of 1.862 Tcf.
Regionally, EIA reports the East registered a 6 Bcf injection to 283 Bcf, 2.7% less than a year ago and 9.3% lower than the five-year average.
Natural gas in storage in the Midwest increased 13 Bcf week-on-week to 371 Bcf, a 0.5% deficit compared to the same week a year ago and 9.3% lower than the five-year average.
Mountain region natural gas in storage increased 2 Bcf, up 26.5% year-on-year to 69.4% above the five-year average.
South Central storage rose 32 Bcf to 839 Bcf, 4.6% more than in the same week last year and 0.1% above the five-year average.

Chicago Fed: Activity Edges Higher; Prices Rise

Economic activity in the Federal Reserve’s Seventh District, which includes Illinois, Indiana, Michigan, Wisconsin and Iowa, increased slightly in recent weeks, according to the April Beige Book released by the Federal Reserve Bank of Chicago.

Manufacturing demand rose modestly in late February and March, with gains reported across chemicals, plastics, and primary metals, supported in part by demand from the pharmaceutical, semiconductor, and defense sectors. Fabricated metals and machinery sales also increased slightly, while heavy truck production grew moderately, and auto output edged lower.

According to the same report, business spending was flat overall during the reporting period, with capital expenditure holding steady but expected to increase slightly over the coming year. Demand for truck transportation was steady, while freight rates moved higher as rising fuel costs were passed through to customers.

In the agricultural sector, contacts said expectations for 2026 farm income declined, as input costs, including fertilizers and fuel, rose faster than agricultural product prices. Crop prices increased during the reporting period, with gains in corn, soybeans, and wheat, alongside higher livestock prices.

Across the district, contacts reported moderate increases in producer prices, driven by higher costs for raw materials, energy, and shipping, with some attributing the rise to the ongoing conflict in the Middle East. Wages increased modestly, while benefits’ cost rose at a moderate pace.

CEC: California Gasoline Stocks Climb 232,000 Bbl on Week

California Energy Commission data show statewide gasoline inventories increased in the week ending April 10, as the agency continues to report only statewide totals in its Weekly Fuels Report released Thursday (4/16).
Statewide gasoline stocks, including CARB reformulated, non-California, and blending components, climbed by 232,000 bbl to 9.730 million bbl, but remained 8.1% lower than last year’s level of 10.589 million bbl.
Statewide gasoline production fell by 387,000 bbl to 4.662 million bbl, and production stood 21.2% below last year’s level of 5.915 million bbl.

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.

CEC: California Diesel Stocks Rise 89,000 Bbl on Week

California Energy Commission data show statewide diesel inventories increased in the week ending April 10, according to the agency’s Weekly Fuels Report released Thursday (4/16).

Statewide CARB diesel and other diesel fuel stocks rose by 89,000 bbl to 2.904 million bbl, and inventories were 0.2% lower than last year’s level of 2.909 million bbl.

Statewide diesel production climbed by 89,000 bbl to 1.557 million bbl, and production was 12.8% higher than last year’s level of 1.380 million bbl.

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.

U.S. Rack ULSD Up 7.7cts; Gasoline Edges Higher

Wholesale rack prices for ultra-low sulfur diesel (ULSD) and gasoline moved higher Thursday (4/16), following Wednesday’s decline, as physical markets firmed alongside a modest recovery in futures and tighter supply signals from the latest inventory data.

Nationwide ULSD rack prices averaged $3.9185 gallon, up 7.7cts from Wednesday’s $3.8415 gallon, according to DTN data. Conventional unleaded gasoline rack prices averaged $3.2459 gallon, up 1.34cts from $3.2325 gallon.

Futures’ prices moved slightly higher on Thursday morning. Front-month May NYMEX ULSD futures increased 4.68cts to $3.8000 gallon, while May RBOB gasoline futures rose 1.69cts to $3.0861 gallon. WTI crude for May delivery added $0.35 to $91.64 bbl.

The firmer tone in futures comes as flows through the Strait of Hormuz remain limited, even as markets continue to weigh the possibility of renewed U.S.-Iran negotiations later this week. The combination has kept a floor under prices, with supply still constrained despite the recent shift toward diplomacy.

Support in physical markets was also reinforced by the latest U.S. Energy Information Administration data released Wednesday (4/15), which showed a sizable draw in both gasoline and distillate inventories. Gasoline stocks fell by 6.4 million bbl, while distillate inventories declined by 3.1 million bbl, extending recent tightening trends and pointing to continued strength in refined product demand.

ULSD racks increased across all regions Thursday, with the largest move on the West Coast. PADD 5 ULSD rose 11.62cts to $4.7473 gallon, maintaining the strongest regional premium. East Coast prices increased 8.62cts to $3.9044 gallon, while Gulf Coast values climbed 7.95cts to $3.8651 gallon. Midwest ULSD rose 6.97cts to $3.7397 gallon, and Rocky Mountain prices increased 3.24cts to $4.2148 gallon.

Relative to the national ULSD rack average of $3.9185 gallon, PADD 5 held the widest premium at 82.88cts above the U.S. benchmark, followed by PADD 4 at 29.63cts above. PADD 1 traded near parity with the national average, while PADD 2 remained the deepest discount at 17.88cts below the benchmark, followed by PADD 3 at 5.34cts below.

On conventional unleaded gasoline racks, all regions moved higher Thursday, though increases were more measured compared to diesel. West Coast gasoline posted the largest increase, rising 4.54cts to $3.9223 gallon, maintaining the only premium position. East Coast prices increased from 2.06cts to $2.9241 gallon, while Midwest values rose 1.77cts to $2.7386 gallon. Gulf Coast gasoline edged up 0.71cts to $2.9053 gallon, and Rocky Mountain prices were nearly flat, up 0.26cts to $3.1935 gallon.

Compared with the national gasoline average of $3.2459 gallon, PADD 5 remained the only region trading at a premium, at 67.64cts above the benchmark. All other regions held discounts, led by PADD 2 at 50.73cts below the national average, followed by PADD 1 at 32.18cts and PADD 3 at 34.06cts. PADD 4 traded just slightly below the national benchmark.

Premium gasoline rack prices also moved higher across all regions, broadly in line with conventional gasoline, with West Coast values remaining elevated at $4.3094 gallon.

The price action points to a market that, despite headline-driven swings, is still anchored by tight near-term fundamentals. Inventory draws and steady export flows are keeping pressure on available barrels, particularly in distillates, while the forward curve continues to signal urgency in the prompt market.

With ULSD backwardation holding above 21cts and RBOB above 6cts, the structure suggests that immediate supply remains the key constraint, even as broader sentiment shifts with each geopolitical update.