MARKETWIRE ALERTS

MARKETWIRE ALERTS 

MarketWire Afternoon News April 20th:

Updated at 5:00 PM ET 

HEADLINES:

— Duffy: U.S. to Invest $2.04 Billion on Rail Infrastructure

— EIA: China Led 2025 Global Oil Stocks With 1.4 Billion Bbl

— Phillips 66, K.Morgan Advance 200k Bpd W. Gateway Pipeline

— U.S. Rack ULSD Falls 36.1cts; Gasoline Drops 13cts

NEWS:

Duffy: U.S. to Invest $2.04 Billion on Rail Infrastructure

The Transportation Department will invest $2.04 billion to modernize U.S. railroad infrastructure and improve rail travel across the country, Transportation Secretary Sean P. Duffy announced Monday (4/20).

The investment, made through the Federal Railroad Administration’s Consolidated Rail Infrastructure and Safety Improvements program, focuses on reducing congestion, jumpstarting ridership growth and improving regional infrastructure to fast-track the movement of commerce, the announcement posted on the department’s website said.

EIA: China Led 2025 Global Oil Stocks With 1.4 Billion Bbl

China continued to lead world oil inventories in 2025, with stockpiles climbing 1.1 million bpd to reach an estimated 1.4 billion bbl, the U.S. Energy Information Administration (EIA) said in an analysis published Monday (4/20).

The United States held the second largest volume of strategic oil last year, with 413 million bbl in the Strategic Petroleum Reserve, while its commercial stocks totaled 411 million bbl, the EIA said. Total U.S. storage capacity was 714 million bbl.

Japan and OECD Europe maintained strategic reserves of 263 million bbl and 179 million bbl, respectively, while South Korea held 79 million bbl to round out the top five.

The EIA notes that while OECD stocks are primarily government-mandated for emergencies, China’s growth is driven by both strategic security and expanded commercial refinery storage.

Phillips 66, K.Morgan Advance 200k Bpd W. Gateway Pipeline

Phillips 66 and Kinder Morgan are advancing the proposed 200,000-bpd Western Gateway Pipeline after securing sufficient long-term shipper commitments during a second open season, the companies announced Monday (4/20).

The project, which remains subject to final transportation service agreements, joint venture terms, and board approvals, is designed to move a combination of products from gasoline to diesel and jet fuel from the Midcontinent and Gulf Coast to key Western markets.

Western Gateway would link supply from Borger, Texas, to Phoenix, Arizona, with further connectivity into California and Las Vegas via Kinder Morgan’s existing systems. The plan includes a combination of new pipeline construction and the reversal of existing assets, allowing refined products to flow west into markets that are often structurally tighter on supply.

The project is targeting an in-service date of mid-2029, positioning it as a longer-term infrastructure addition aimed at improving supply flexibility and reliability across the Arizona and California markets.

“Customer response during the open season underscores the importance of Western Gateway in addressing long-term refined products logistics needs in the region,” said Phillips 66 Chairman and CEO Mark Lashier.

Executives from both companies said strong shipper interest highlights the need for additional long-haul refined products capacity into the West Coast, where logistics constraints and limited refining capacity have historically supported higher prices.

U.S. Rack ULSD Falls 36.1cts; Gasoline Drops 13cts

Wholesale rack prices for ultra-low sulfur diesel (ULSD) and gasoline moved lower Monday (4/20), reversing Friday’s increases, as physical markets adjusted sharply downward despite a rebound in futures tied to renewed disruption in oil movements on the Strait of Hormuz.

Nationwide ULSD rack prices averaged $3.6004 gallon, down 36.10cts from Friday’s $3.9614 gallon, according to DTN data. Conventional unleaded gasoline rack prices averaged $3.1835 gallon, down 13.02cts from $3.3137 gallon.

Futures moved higher Monday morning. Front-month May NYMEX ULSD futures rose 13.51cts to $3.5325 gallon, while May RBOB gasoline futures increased 8.63cts to $3.0917 gallon. WTI crude for May delivery climbed $4.45 to $88.30 bbl.

The rebound in futures comes as markets remain as volatile as the U.S.-Iran ceasefire. Over the weekend, tensions picked back up after the U.S. seized an Iranian vessel, prompting Tehran to reimpose traffic restrictions in the Strait of Hormuz. Reports of Iranian gunboats engaging commercial vessels added to the uncertainty, pushing crude and product markets higher as participants reassessed near-term supply risk. The two-week ceasefire between the two sides is tenuous, due for expiry by Tuesday, with no word of extension. A first round of peace talks has, meanwhile, failed, with no assurance there will be another.

Rack prices moved sharply lower across all regions, reflecting a continued reset in physical markets after last week’s shift in sentiment.

ULSD racks witnessed the largest drops in PADD 3 and PADD 1. Gulf Coast ULSD fell 51.56cts to $3.4113 gallon, while East Coast prices dropped 37.13cts to $3.6037 gallon. Midwest values declined 32.41cts to $3.4169 gallon, while West Coast ULSD fell 36.46cts to $4.4328 gallon, maintaining the strongest regional premium. Rocky Mountain prices posted the smallest decline, down 19.65cts to $4.0102 gallon.

Relative to the national ULSD rack average of $3.6004 gallon, PADD 5 held the widest premium at 83.24cts above the U.S. benchmark, followed by PADD 4 at 40.98cts above. PADD 1 traded near parity, while PADD 2 and PADD 3 held discounts of 18.35cts and 18.91cts, respectively.

On conventional unleaded gasoline racks, all regions moved lower Monday. Gulf Coast gasoline recorded the largest decline, falling 15.80cts to $2.7992 gallon. East Coast prices dropped 14.52cts to $2.8798 gallon, while Midwest values declined 12.66cts to $2.6773 gallon. Rocky Mountain gasoline fell 10.93cts to $3.1123 gallon, while West Coast prices dropped 12.22cts to $3.8795 gallon, maintaining the only premium position.

Compared with the national gasoline average of $3.1835 gallon, PADD 5 remained the only region trading at a premium, at 69.60cts above the benchmark. All other regions held discounts, led by PADD 2 at 50.62cts below the national average, followed by PADD 3 at 38.43cts and PADD 1 at 30.37cts. PADD 4 traded just slightly below the national benchmark.

Premium gasoline rack prices also declined across all regions, broadly in line with conventional gasoline. West Coast premiums remained elevated at $4.2697 gallon, while other regions posted similar downward adjustments.

Physical markets appear to be lagging the move seen in futures, with rack prices still adjusting to last week’s correction even as geopolitical risk begins to build back into paper markets. Futures have responded quickly to renewed tensions, while rack values continue to reflect looser near-term buying interest and improved availability that developed during the recent pullback.

Even with the recent pressure, structure continues to point to a market that is not fully loose. RBOB backwardation has firmed back to around 7cts, while ULSD holds near 10cts on the front month, suggesting prompt supply remains relatively supported despite the broader decline in flat price levels.