MARKETWIRE ALERTS

MARKETWIRE ALERTS 

MarketWire Afternoon News April 27th:

Updated at 5:00 PM ET 

HEADLINES:

—  LA Jet Fuel Basis Eases by 25cts From Record $1.10 Premium

—  U.S. Farm Bankruptcies Jump Amid Diesel Price Surge

—  Energy Futures Rise 45% to 55% As Iran War Hits 2nd-Mo

—  Shell Buys Canada Shale Operator ARC Resources for $16.4B

— Valero’s McKee Refinery Reports Planned 8-hour Flare

NEWS:

LA Jet Fuel Basis Eases by 25cts From Record $1.10 Premium

The basis for prompt Los Angeles jet fuel weakened by 25cts on Monday (4/27) to trade at an 85cts premium to May NYMEX ULSD futures, DTN data showed, in the first notable pullback after a historic run-up in West Coast jet values.

An extraordinary rally last week pushed Los Angeles jet fuel into triple-digit territory for the first time on record, leaving the basis at $1.10 gallon premium to NYMEX ULSD as of Thursday (4/23) – prior to Monday’s pullback.

Notwithstanding the latest ease in jet fuel’s value, market participants expect tightening refinery capacity to drive the market in the near term.

The West Coast refining system is under pressure from existing and impending processing plant closures. The shutdown of Phillips 66’s 139,000 bpd Los Angeles refinery earlier this year, along with the planned closure of Valero’s 145,000 bpd Benicia refinery later this month, has removed significant production from the regional system, leaving supply vulnerable to sharp price swings even as demand remains relatively steady.

U.S. Farm Bankruptcies Jump Amid Diesel Price Surge

Surging fuel cost has become one of the primary causes for U.S. farm bankruptcies, with surging diesel prices indicating no relief anytime soon for the agricultural sector.

Chicago ultra-low sulfur diesel spot prices averaged $2.1253 gallon in 2025, according to DTN Energy data, but have risen to $2.9272 gallon as of April 27, with prices averaging $3.5737 gallon over the past 60 days, significantly increasing operating costs for Midwest farmers.

Jump in energy expenses contributed to a 46% increase in total U.S. farm bankruptcies during 2025, according to a report by the American Farm Bureau Federation.

Higher input costs and mounting debt have continued to pressure farm producers, with the Midwest seeing the most significant impact on Chapter 12 filings, the report said.

Weakening livestock margins and losses across key row crops further drove the year-over-year jump in Midwest bankruptcy cases.

Rising input costs, particularly for diesel-reliant fuel and fertilizer, have left many producers increasingly reliant on credit to fund operations.

Declining receipts across major commodities have compounded the financial strain as producers struggle to manage the price volatility.

Total U.S. farm debt is expected to climb to a record $624.7 billion in 2026, underscoring the growing pressure across the sector.

Energy Futures Rise 45% to 55% As Iran War Hits 2nd-Mo

Futures of crude oil and refined products have surged between 45% and 55% in the two months of the U.S.-Israeli conflict with Iran, a period marked by the most severe disruption to maritime petroleum flows in modern history.

In crude, NYMEX WTI climbed nearly 45% and ICE Brent about 50% since February 27, just before the breakout of the war.  Downstream, NYMEX Ultra-low sulfur diesel (ULSD) futures led with a 55% rally and gasoline remained not too far behind, with a 53% climb.  

The price evolution reflects a market fundamentally reshaped by a war that shows little hopes of a quick diplomatic exit.

NYMEX WTI crude for June delivery hovered at just under $97 bbl on Monday (4/27), versus the $67.02 settlement of February 27.

ICE Brent has followed a similar trajectory, trading almost 50% above pre-war levels at over $108 bbl as the “Hormuz premium” – which refers to the blockade of the Middle East waterway that used to be a transit point for a fifth of the world’s petroleum supply – remains firmly entrenched.

Downstream, the impact of the geopolitical impasse is even more visible at the rack. NYMEX RBOB futures transitioned from $2.2855 gallon pre-war to $3.5017 gallon today, as seasonal demand spikes collide with fears over refinery feedstock reliability.

NYMEX ULSD appreciated $2.6709 gallon to $4.0700, even hitting record highs of $4.7061 in early April.

The U.S. Dollar Index has provided a secondary layer of pressure, currently trading at 98.10. While the index has softened from mid-March highs above 100, it remains 0.6% above its pre-war baseline of 97.5. This strengthening greenback creates a “double-hit” for global importers who must navigate both record-high fuel prices and a more expensive settlement currency.

With U.S. President Donald Trump’s cancellation of peace talks with Iran over the weekend – and Israel launching fresh strikes Sunday (4/26) on suspected hideouts of Iranian ally Hezbollah in Lebanon – risks to the energy complex remain skewed to the upside.

Shell Buys Canada Shale Operator ARC Resources for $16.4B

Shell announced Monday (4/27) a deal to acquire Canada’s ARC Resources, targeting what it called low-cost, low-carbon intensity assets of a shale producer basin in the British Columbia and Alberta region for approximately $16.4 billion.

The acquisition will add approximately 370,000 bpd of oil equivalent production and 2 billion barrels of reserves to Shell’s portfolio, the company said in a news release.

Shell expects the 25% cash-75%-debt deal to generate double-digit returns and become accretive to free cash flow per share starting in 2027.

The energy major added that the current shareholder distribution policy and annual investment budget of $20 billion to $22 billion will not be impacted.

Valero’s McKee Refinery Reports Planned 8-hour Flare

Diamond Shamrock Refining Company, operator of Valero’s 200,000 bpd McKee Refinery in Sunray Texas, has filed an initial air emission event report with Texas regulators disclosing a planned opacity exceedance tied to scheduled maintenance on the facility’s Fluid Catalytic Cracking Unit (FCCU) electrostatic precipitator (ESP) discharge electrodes.

The maintenance event is scheduled to start on Monday (4/27), running from 8:00 a.m. to 4:00 p.m. CT.

Opacity at the FCCU Regeneration Stack Vent is estimated to reach 100%, far exceeding the authorized limit of 20%.  The company stated the work is intended to enhance the long-term reliability of the ESP, but that a brief interruption of performance could occur during the activity.

Operations and maintenance personnel will follow all appropriate procedures to minimize any interruption, according to the filing.