MARKETWIRE ALERTS

MARKETWIRE ALERTS 

MarketWire Afternoon News May 6th:

Updated at 5:00 PM ET 

HEADLINES:

— LA Jet Fuel Basis Dips 10cts in Continued Volatility

— Midwest CBOB Basis Rebounds on PADD 2 Stock Tumble

— USWC Flaring Eases, Supply Tightness Climb

— BTS: U.S. Airlines Jet Fuel Usage Up 19.5% in March

— EIA: PADD 1 Distillates Stocks Hit 10-Month Low

— EIA: PADD 3 Distillate Stocks Rise, Remain Near 3-Year Low

— Analysis: EIA Sees Distillate Exports Surge to Record High

— EIA: PADD 5 Gasoline Stocks Fall for 3rd Week 

— ExxonMobil Reports Emissions Event at Beaumont Refinery

— PADD 2 Gasoline Stocks Hit 4-Month Low

— EIA: Crude Stocks Down as Distillates Hit 20-Year Low

— EIA: U.S. Ethanol Inventories Expand, Up 3.3% Year-on-Year

— EIA: Propane/Propylene Stocks Post Second Consecutive Draw

— PBF Torrance Plans Flaring Event Through Mid-May

NEWS:

LA Jet Fuel Basis Dips 10cts in Continued Volatility

The basis for prompt Los Angeles jet fuel weakened Wednesday (5/6), falling by 10cts to a 50cts premium above June NYMEX ULSD futures, as higher inventory numbers triggered another bout of volatility for a market that saw record high premiums last month.

In the prior session, the basis rose 15cts to a 60cts premium against June ULSD.

Los Angeles jet fuel values have broadly retreated over the past week from the record $1.10 gallon premium reached in late April.

Los Angeles diesel also witnessed trades on Wednesday, where it was last seen at a 30cts premium to June NYMEX ULSD futures, up by 10cts on the day. That signaled renewed firmness in the diesel market even as jet fuel values softened.

Jet fuel inventories in the U.S. West Coast climbed by 400,000 bbl last week to 11 million bbl and were 1 million bbl higher from a year ago, the Energy Information Administration reported Wednesday.

Distillate fuel oil inventories in the PADD 5 region were unchanged at 10.1 million bbl during the week ended May 1, but were 1 million bbl lower than the volume reported in the same period last year, the EIA data showed.

Midwest CBOB Basis Rebounds on PADD 2 Stock Tumble

Midwest CBOB differentials to NYMEX RBOB for June rose Wednesday (5/6) as weekly data showed the region’s gasoline stocks at a four-month low.

A tumble in gasoline futures, which followed by other NYMEX markets lower on reports that the U.S.-Iran war could end soon, also led to a spike in CBOB’s basis across the Midwest.

The sharpest move upward was on the Wolverine Pipeline, where the differential rose 20cts to reach a premium of 35cts gallon over June NYMEX RBOB. That was the highest premium for Wolverine CBOB since the April 30 level of 44cts gallon, DTN data showed.

The Buckeye Storage Complex in northern Indiana witnessed a 9cts hike from the prior session to a premium of 17cts gallon.

In Chicago, the basis moved for CBOB moved up by 6cts on the day to also trade at 17cts gallon over NYMEX RBOB for June.

Midwest gasoline inventories declined for the third consecutive week last week, falling to their lowest level since mid-December, the U.S. Energy Information Administration (EIA) said in data published Wednesday.

Gasoline stocks in the PADD 2 region fell by 3.4 million bbl to 46.2 million bbl during the week ended May 1, the lowest since the week ended Nov. 28, 2025, when inventories stood at 44.9 million bbl, the EIA reported.

USWC Flaring Eases, Supply Tightness Climb

Flaring activity across the U.S. West Coast continues, although it remains below the levels seen late last year, when frequent refinery disruptions triggered repeated emissions events. 

The drop, some traders argue, reflects reduced refining capacity rather than improved systema stability.

That shift comes as Phillips 66 shut its 139,000 bpd Los Angeles refinery in the last quarter of 2025, while Valero has idled its 170,000 bpd Benicia refinery through a phased process that began in February.

Both refineries recorded multiple emission events last year,  followed by Chevron’s 285,000 bpd El Segundo refinery, which experienced some of its most intense flaring activity in October 2025. A fire at the refinery’s Isomax 7 jet fuel unit forced the closure of multiple units, squeezing fuel supplies in the region.

Despite the declining emission reports linked to the Los Angeles and Benicia refineries closure, the USWC still faces a challenging tight supply system, which has already been reflected in pricing.

Since the start of the Iran war on February 28, Los Angeles ultra-low sulfur diesel (ULSD) spot average prices have climbed 68%, while jet fuel and CARBOB regular average values have risen 59% over the same period, according to DTN data.

Retail gasoline average prices in the region have also risen to $5.22 gallon as of Monday May 4, the highest level since October 17, 2022 when it was at $5.09 gallon – driven by the Russia-Ukraine war- , according to Energy Information Administration (EIA) data. Meanwhile, diesel retail average prices reached $6.63 gallon on Monday compared to a pre-war average of $4.27 gallon, the same data showed .

Geopolitical risks tied to the Iran war are putting additional pressure on the USWC. Concerns around potential disruptions to flows through the Strait of Hormuz have propelled global oil prices, compounding the impact of reduced refining capacity on the West Coast.

With less capacity online and global risks rising, traders say the market is quieter on the surface but increasingly fragile heading into peak demand season.

On Wednesday (5/6), the EIA reported that motor gasoline inventories in the PADD 5 region fell for the third consecutive week, declining by 200,000 bbl to 28.2 million bbl during the week ended May 1. Distillate fuel oil stocks in the same region were unchanged at 10.1 million bbl during the week profiled but were 1 million bbl lower than the volume reported in the same period last year. 

BTS: U.S. Airlines Jet Fuel Usage Up 19.5% in March

U.S. scheduled service airlines consumed 19.5% more fuel in March than in February, according to data released Wednesday (5/6) by the Bureau of Transportation Statistics.

Jet fuel consumed by airlines in March totaled 1.615 billion gallons compared to 1.352 billion gallons in February. Consumption rose 0.4% year-on-year from the 1.609 billion gallons used in March 2025.

Total fuel expenditure for the airlines rose to $5.06 billion in March from $3.23 billion in February. This spending increased by 30.4% compared to the $3.88 billion recorded in March 2025.

The average price of $3.13 per gallon in March was 31% higher than the February rate. This price increased by 30% year-on-year from the $2.41 paid during March 2025.

EIA: PADD 1 Distillates Stocks Hit 10-Month Low

East Coast (PADD 1) distillate fuel oil inventories declined for a second consecutive week in the week ended May 1, falling to the lowest level in nearly 10 months, while gasoline stocks rose, jet fuel inventories moved lower, and crude oil inventories increased, according to data released by the U.S. Energy Information Administration on Wednesday (5/6).

Distillate fuel oil inventories in PADD 1 declined by 1.3 million bbl to 24.6 million bbl in the respective week and were slightly above the 24.3 million bbl recorded in the same period last year. The latest level is the lowest since the week ended July 11, 2025, when inventories stood at 23.6 million bbl. Distillate fuel oil imports averaged 97,000 bpd, up by 9,000 bpd from the prior week and above the 84,000 bpd imported in the same week last year.

Motor gasoline stocks in PADD 1 increased by 1.3 million bbl to 56.9 million bbl in the week ended May 1, EIA data showed, though inventories remained below the 59.2 million bbl recorded in the same week last year. Gasoline inventories remained near the lowest levels since the week ended January 2, when stocks stood at 56.2 million bbl. Gasoline imports into the East Coast averaged 416,000 bpd, up by 240,000 bpd week-over-week but below the 574,000 bpd imported in the comparable week of the prior year.

Crude oil inventories on the East Coast increased by 900,000 bbl to 8.5 million bbl week-over-week and were slightly below the 8.7 million bbl reported in the same week of 2025. Crude oil imports surged by 460,000 bpd to 596,000 bpd and were above the 487,000 bpd recorded in the comparable week last year.

Jet fuel inventories in PADD 1 declined by 400,000 bbl to 10.5 million bbl in the reference week and were above the 9.3 million bbl recorded in the same period last year. Imports of the product into the region averaged 19,000 bpd, up from 13,000 bpd the prior week and in line with the 19,000 bpd imported a year earlier.

Refinery utilization on the East Coast increased to 89.2% from 86.1% the previous week, with crude oil inputs rising by 36,000 bpd to 825,000 bpd, EIA data showed.

EIA: PADD 3 Distillate Stocks Rise, Remain Near 3-Year Low

U.S. Gulf Coast (PADD 3) distillate fuel oil inventories increased during the week ended May 1 but remained near the lowest level in more than three years, while gasoline inventories rose, jet fuel balances declined, and crude oil stocks moved lower, according to data released Wednesday (5/6) by the U.S. Energy Information Administration.

PADD 3 distillate fuel oil inventories, the feedstock for diesel, increased by 1.3 million bbl to 39.3 million bbl in the profiled week and were below the 42.7 million bbl recorded in the same week last year. Despite the increase, inventories remained near the three-year low reached the previous week, when stocks fell to 38 million bbl, the lowest level since the week ended March 17, 2023.

Jet fuel inventories in PADD 3 declined by 600,000 bbl to 14.2 million bbl during the reference week but remained above the 13.2 million bbl reported in the comparable week last year. As a net exporter of distillate and jet fuel, PADD 3 does not report imports of those products.

Motor gasoline inventories in PADD 3 increased by 200,000 bbl to 81.1 million bbl and were below the 82.1 million bbl reported in the same week last year. Motor gasoline imports into the Gulf Coast averaged 86,000 bpd last week, up by 86,000 bpd from the prior week and above the 47,000 bpd imported during the same week last year.

Crude oil stocks in PADD 3 declined by 2 million bbl week-over-week to 264.1 million bbl and were above the 249.4 million bbl recorded in the same week of 2025.

Crude imports into the Gulf Coast fell by 82,000 bpd to 1.183 million bpd and were above the 1.019 million bpd recorded in the comparable week last year.

Refinery utilization on the Gulf Coast increased to 95.9% from 95.8% the previous week, while crude oil inputs declined by 85,000 bpd to 9.277 million bpd, EIA data showed.

Analysis: EIA Sees Distillate Exports Surge to Record High

U.S. petroleum exports continued at a breakneck pace amid the ongoing supply disruption in the Persian Gulf, with diesel and heating oil exports last week jumping to their fastest on record, Energy Information Administration data showed Wednesday (5/6). Amid the surge in international demand, inventories have dwindled to a 20-year low.

The closure of the Strait of Hormuz more than two months ago removed some 5 million bpd of refined product supply, mostly middle distillates, from the market. It has also cut refiners dependent on Middle Eastern crude oil off at least 10 million bpd of inputs, forcing them to throttle operations and halt exports, thus widening the fuel supply-demand gap. Diesel and jet fuel were and continue to be the most impacted by the supply shock, with spot prices in Asia setting new record highs.

Consumers globally have turned to U.S. refiners amid wide open arbitrage windows. According to EIA data, distillate fuel oil exports have soared from 1.18 million bpd in mid-March to an unprecedented 1.86 million bpd in the week ending May 1. Over the past four weeks, they clocked in at more than 1.66 million bpd, up 39% year-on-year and 71,000 bpd higher than the previous record four-week average set just the week before.

International appetite for U.S. barrels was not limited to just diesel. Jet fuel exports soared to 427,000 bpd last week, just shy of the all-time high posted in early April, propelling total refined product exports to more than 8.22 million bpd, smashing yet another record. Over the past four weeks, they were up 19% year-on-year, with jet fuel exports clocking in at nearly twice the rate seen in the same time span last year.

The largest supply disruption in history has been testing U.S. oil export capacity. In the last full week of April, total petroleum exports including crude oil soared 1.3 million bpd past the previous all-time high to 14.18 million bpd, and last week averaged just shy of 13 million bpd. In the last four weeks, the U.S. exported just under 13.2 million bpd of petroleum liquids, marking a 22% year-on-year increase.

The global distillate supply deficit will likely continue to pull barrels onto the export market, straining already low inventories even more. Nationwide distillate fuel inventories just fell to a 20-year low 102.3 million bbl, down 4% year-on-year and nearly 10% below the five-year seasonal average. While not yet at the minimum operational threshold, a continued depletion of stocks amid a surge in foreign bids is set to pressure prices at the pump higher.

EIA: PADD 5 Gasoline Stocks Fall for 3rd Week

U.S. West Coast gasoline and crude oil inventories declined last week while jet fuel stocks climbed in the week ending May 1, Energy Information Administration data showed on Wednesday (5/6).
Motor gasoline inventories in the PADD 5 region fell for the third consecutive week, declining by 200,000 bbl to 28.2 million bbl during the week ended May 1, after falling the prior week, the EIA’s Weekly Petroleum Status Report showed. Year-on-year, gasoline stocks in the region were higher by 1.5 million bbl.
PADD 5 gasoline imports spiked by 85,000 bpd to 252,000 bpd last week and were 116,000 bpd higher compared with the same week last year.
Distillate fuel oil inventories in the same region were unchanged at 10.1 million bbl during the week profiled but were 1 million bbl lower than the volume reported in the same period last year, EIA data showed. Distillate imports were 15,000 bpd lower at 10,000 bbl for the week and 3,000 bpd lower than year-ago levels.
Jet fuel stocks in the West Coast climbed by 400,000 bbl to 11 million bbl and were 1 million bbl higher from a year ago. Its imports in PADD 5 dropped by 40,000 bpd to 3,000 bpd last week and were 104,000 bpd lower compared with the same week last year.
Crude oil inventories in the region climbed by 1.4 million bbl to 46.7 million bbl in the week ending May 1 and were 700,000 bbl lower than the same week in 2025. Crude imports in PADD 5 fell by 472,000 bpd to 559,000 bpd on the week and were 574,000 bpd lower year-on-year.
Refining utilization in the West Coast slipped to 79.9% from 80.1% the prior week while rising from 76.3% a year ago, according to EIA data.

ExxonMobil Reports Emissions Event at Beaumont Refinery

ExxonMobil reported an unplanned emissions event lasting more than 17 hours at its 480,000 bpd Beaumont refinery in Beaumont, Texas caused by a leak that released 23 air contaminants, according to a filing with the Texas Commission on Environmental Quality.

The incident began at 5:00 p.m. on Sunday (5/3), and ended until 10:30 AM on Monday (5/4).

The release originated in the North Tanks Fugitive Area of the facility, releasing nearly 295 pounds of octane, followed by decanes at 217 pounds and unspeciated volatile organic compounds (VOCs) at 158 pounds, among others. The release included benzene as well as hydrogen sulfide and toluene, all of which carry serious health and environmental risks even in small amounts.

ExxonMobil stated that no offsite impacts were detected and that it expects to fulfill all contractual obligations despite the incident.

The incident remained listed as open in state records as of the time of publication.

PADD 2 Gasoline Stocks Hit 4-Month Low

Midwest (PADD 2) gasoline inventories declined for the third consecutive week, falling to their lowest level since mid-December, while distillate and crude oil inventories also moved lower, according to data released by the U.S. Energy Information Administration (EIA) published Wednesday (5/6). Midwest jet fuel inventories rose slightly as refinery utilization decreased during the reference week ended May 1.

Motor gasoline inventories in PADD 2 fell by 3.4 million bbl to 46.2 million bbl, the EIA data showed. This was below the 49.9 million bbl recorded in the same week last year and the lowest since the week ended Nov. 28, 2025, when inventories stood at 44.9 million bbl. Total motor gasoline imports averaged 1,000 bpd, the same as the prior week but below the 4,000 bpd imported in the comparable week of the prior year.

Distillate fuel oil inventories in PADD 2 dropped by 1.0 milllion bbl on the week to 24.9 million bbl and but slightly above the 24.7 million bbl reported in the same week of the previous year. Distillate fuel oil imports averaged 12,000 bpd, up from 6,000 bpd the prior week and above the 8,000 bpd imported a year earlier.

Jet fuel inventories in the Midwest increased by 100,000 bbl to 7.2 million bbl and were above the 6.7 million bbl recorded in the same week last year. During the profiled week, PADD 2 jet fuel imports remained at zero bpd, unchanged week-over-week and year-over-year.

Crude oil inventories in PADD 2 decreased by 2.3 million bbl to 112.1 million bbl during the reference week but remained above the 108.3 million bbl recorded in the same week of the previous year. Crude oil imports into the Midwest averaged 2.784 million bpd during the reference week, compared with 2.974 million bpd the prior week and 3.031 million bpd reported in the same week of the prior year.

Refinery utilization in the Midwest rose to 86% of operable capacity from 84.9% the prior week. This was also lower than the 88.8% utilization rate reported for the same week of the prior year, according to EIA data.

EIA: Crude Stocks Down as Distillates Hit 20-Year Low

U.S. commercial crude oil inventories declined for a second straight week while distillate fuel inventories dropped to their lowest level in 20 years, according to Energy Information Administration data for the week ended May 1 released Wednesday (5/ 6). Gasoline and jet fuel inventories also moved lower, while refinery utilization climbed to the highest level since late summer.

Commercial crude oil inventories fell by 2.3 million bbl to 457.2 million bbl during the week profiled.

The latest crude inventory balance was 18.8 million bbl or 4.3% above the same period last year.

Crude oil imports averaged 5.48 million bpd in the profiled week, down 273,000 bpd from the previous week. Over the last four weeks, crude imports averaged 5.649 million bpd, down 2.4% from the same period last year.

Crude oil exports averaged 4.75 million bpd last week, down from 6.44 million bpd the prior week but above the 4.01 million bpd reported a year earlier.

Distillate fuel inventories declined by 1.3 million bbl to 102.3 million bbl during the reference week, the lowest level since the week ended April 28, 2005, when inventories stood at 102.2 million bbl. Stocks were down 4.4 million bbl, or 4.1%, from the same week last year.

Total motor gasoline inventories decreased by 2.5 million bbl to 219.8 million bbl, the lowest level since the week ended November 28, 2025, when inventories stood at 214.4 million bbl. On an annual basis, gasoline inventories were down 5.9 million bbl, or 2.6%.

Jet fuel inventories fell by 600,000 bbl to 43.6 million bbl last week. Despite the decline, inventories remained 3.5 million bbl, or 8.8%, above year-ago levels.

Refinery utilization increased to 90.1% of operable capacity last week from 89.6% in the prior week. Crude oil inputs into refineries averaged 16.029 million bpd, slightly below the previous week’s level.  

Total products supplied over the last four weeks averaged 20.7 million bpd, up 3.1% from the same period last year. Gasoline demand averaged 8.66 million bpd, up 0.6% from year-ago levels, while distillate demand averaged 4.01 million bpd, higher by 1.7% from the previous year.

EIA: U.S. Ethanol Inventories Expand, Up 3.3% Year-on-Year

The Energy Information Administration reported on Wednesday (5/6) that overall ethanol production in the United States averaged 1.017 million bpd in the week ending May 1, up 8,000 bpd week-on-week and 3,000 bpd, or 0.3% lower than in the same week last year. Four-week average output at 1.071 million bpd was 44,000 bpd above the same four weeks last year.

Midwest ethanol production averaged 959,000 bpd, up 2,000 bpd week-on-week and 9,000 bpd, or 0.9% lower than in the same week last year. Four-week average output at 1.017 million bpd was 48,000 bpd above the same four weeks last year.
Ethanol blending activity in the U.S. averaged 902,000 bpd, down 15,000 bpd week-on-week and 16,000 bpd, or 1.8% higher than in the same week last year. Four-week average blending demand at 902,000 bpd was in line with year-ago levels.

Blender inputs at the East Coast were unchanged from last week while inputs in the Midwest were down 5,000 bpd, down 1,000 bpd on the Gulf Coast and down 9,000 bpd on the West Coast.
Domestic ethanol inventories ended the week at 26.02 million bbl, up 139,000 bbl week-on-week and 829,000 bbl, or 3.3% higher than in the same week last year.
East Coast PADD 1 inventories ended the week at 7.695 million bbl, down 207,000 bbl week-on-week and 201,000 bbl, or 2.7% higher than in the same week last year.
Midwest PADD 2 inventories ended the week at 10.249 million bbl, up 229,000 bbl week-on-week and 6,000 bbl, or 0.1% higher than in the same week last year.
Gulf Coast PADD 3 inventories ended the week at 5.264 million bbl, up 14,000 bbl week-on-week and 840,000 bbl, or 19% higher than in the same week last year.
West Coast PADD 5 inventories ended the week at 2.451 million bbl, up 100,000 bbl week-on-week and 26,000 bbl, or 1% lower than in the same week last year.

EIA: Propane/Propylene Stocks Post Second Consecutive Draw

he Energy Information Administration reported on Wednesday (5/6) total domestic propane/propylene stocks of 77.556 million bbl in the week ending May 1, down 1.29 million bbl week-on-week and 29.38 million bbl, or 61% higher than in the same week last year.

Data show propane/propylene exports last week averaged 2.028 million bpd, down 232,000 bpd week-on-week and 360,000 bpd, or 21.6%, higher than in the same week last year.

Implied demand for propane/propylene in the United States averaged 1.17 million bpd, up 182,000 bpd week-on-week and 69,000 bpd, or 6.3% higher than in the same week last year.

EIA reports domestic propane/propylene production averaged 2.942 million bpd, down 35,000 bpd week-on-week and 120,000 bpd, or 4.3% higher than in the same week last year.

East Coast PADD 1 inventories ended the week at 3.635 million bbl, up 37,000 bbl week-on-week and 467,000 bbl, or 11.4% lower than in the same week last year.

Midwest PADD 2 inventories ended the week at 16.236 million bbl, up 658,000 bbl week-on-week and 6.005 million bbl, or 58.7% higher than in the same week last year.

Gulf Coast PADD 3 inventories ended the week at 54.598 million bbl, down 1.909 million bbl week-on-week and 23.563 million bbl, or 75.9% higher than in the same week last year.

Combined inventories in the Rockies and the West Coast, PADD 4 and 5, ended the week at 3.086 million bbl, down 77,000 bbl week-on-week and 278,000 bbl, or 9.9% higher than in the same week last year.

PBF Torrance Plans Flaring Event Through Mid-May

PBF Energy’s Torrance refinery in California is scheduled to conduct a planned flaring event over 10 days, beginning May 7, as part of startup and shutdown activity, a filing with the South Coast Air Quality Management District showed Wednesday (5/6).
The planned event at the 160,000-bpd refinery is expected to begin at approximately 5:00 a.m. local time tomorrow (5/7) and continue through 11:59 p.m. on May 16, according to the filing. The Torrance refinery is a key supplier of gasoline, diesel and jet fuel in the Southern California market and accounts for roughly 10% of California gasoline demand.  
The flaring notice comes as California’s refining system continues to operate under tightening supply conditions following major refinery closures and operational disruptions earlier this year. Phillips 66 permanently shut its 139,000 bpd Los Angeles refinery in the fourth quarter of 2025, while Valero’s 145,000-bpd Benicia refinery ceased refining operations by the end of April, removing significant fuel production capacity from the West Coast market.