MARKETWIRE ALERTS

MARKETWIRE ALERTS 

MarketWire Afternoon News for May 20^th   

Updated at 5:30 PM ET 

HEADLINES:

— LA Diesel Basis Rises 10cts on Tightening Supply

— Midwest CBOB Basis Up as Stocks Dip, Holiday Travel Nears

— EIA: PADD 1 Distillate Stocks Dip to a 10-Month Low

— EIA: PADD 5 Gasoline, Distillate Fuel Oil Stocks Decline

— EIA: PADD 3 Distillate Stocks Rebound From 3-Year Low

— PADD 2 Gasoline Stocks Remain at 6-Month Low

— Motiva’s Port Arthur Refinery Reports Emissions Event

NEWS:

LA Diesel Basis Rises 10cts on Tightening Supply

Prompt Los Angeles diesel basis strengthened Wednesday (5/20) after federal data pointed to declining regional inventories for the product.

Los Angeles diesel traded at a premium of 35cts gallon to June NYMEX ULSD, up 10cts from Tuesday’s (5/19) level.

The move up in the basis came as the U.S. Energy Information Administration reported Wednesday that West Coast distillate inventories dropped by 200,000 bbl to 10 million bbl during the week ended May 15 and were 300,000 bbl lower from the same week last year.

Distillate imports into the region climbed by 10,000 bpd to 18,000 bpd on the week, though imports were still 29,000 bpd lower than the same week in 2025, EIA data showed.

Beyond the headline EIA inventory dip, the Los Angeles diesel basis is surging due to the structural loss of roughly 20% of California’s traditional refining capacity following the late-2025 closure of Phillips 66’s Wilmington facility and Valero’s Benicia idling.

Lacking pipeline links to the Gulf Coast, the West Coast is highly dependent on marine imports. Ongoing maritime blockades in the Middle East have, however, crimped regular flows to the region, adding to the supply squeeze.

Midwest CBOB Basis Up as Stocks Dip, Holiday Travel Nears

Midwest CBOB differentials to NYMEX RBOB for June rose Wednesday (5/20) after federal data showed regional stockpiles of gasoline at new six-month lows.

Demand anticipated ahead of road trips for the May 25 Memorial Day holiday also appeared to boost values for PADD 2 gasoline.

The basis for CBOB in Chicago was at a discount of 10cts gallon to the NYMEX after rising 23cts from Tuesday’s (5/19) discount of 33cts, which marked the weakest level for the product in six weeks.

On the Buckeye Storage Complex, CBOB was at a discount of 12cts gallon, improving from the prior session’s 20cts. On the Wolverine Pipeline, the discount was 10cts compared with Tuesday’s 20cts.

PADD gasoline balances decreased by 600,000 bbl to 45 million bbl during the week ended May 15, falling for a fifth straight week, the U.S. Energy Information Administration reported Wednesday.  The current inventory level is below the 47.8 million bbl recorded the same week of last year and is the lowest since late November 2025.

Midwest refined product differentials look poised to climb this week as blenders and distributors aggressively secure fuel volumes ahead of a record-setting Memorial Day holiday travel surge, regional traders said. The seasonal demand pull coincides with severe structural tightness across PADD 2, where a heavy refinery problem stack heavily restricts regional production capacity and flexibility.

The extensive processing disruptions have triggered extreme spot market price gyrations over the past two weeks, forcing regional suppliers to hoard physical barrels on short-squeeze fears before abruptly releasing them into the market.

Author(s)

EIA: PADD 1 Distillate Stocks Dip to a 10-Month Low

The East Coast (PADD 1) saw the steepest distillate fuel oil inventory draw in the last 10 months during the week ended May 15, while gasoline stocks and jet fuel inventories rose, and crude oil stocks were flat, according to data released by the U.S. Energy Information Administration on Wednesday (5/20).

Distillate fuel oil inventories in PADD 1 saw a 1.8 million bbl draw to close at 24 million bbl last week, the lowest since July 11, 2025, when they were at 23.6 million bbl. However, the figure was higher than 22.6 million bbl recorded in the same period last year. Distillate fuel oil imports averaged 125,000 bpd, down by 67,000 bpd from the prior week, but nearly double the 76,000 bpd imported during the same week last year. 

Motor gasoline stocks in PADD 1 rose by 1.4 million bbl to 55.1 million bbl in the week ended May 15, EIA data showed. This was below 58.2 million bbl recorded in the same week last year. Gasoline imports into the East Coast climbed by 291,000 bpd to 457,000 bpd week-on-week and were below the 468,000 bpd imported in the same week the prior year.  

Crude oil inventories on the East Coast were unchanged at 7.7 million bbl week-over-week, down from 8.7 million bbl seen year-over-year. Crude oil imports fell by 1,000 bpd to 303,000 bpd in the profiled week and were well below the 705,000 bpd recorded in the comparable week last year.  

Jet fuel inventories in PADD 1 rose by 1.6 million bbl to 11.3 million bbl in the reference week, above the 10.2 million bbl seen year-over year. Jet fuel weekly imports into the region rose to 13,000 bpd from zero the previous week and were below the 15,000 bpd seen in the same week a year earlier.  

Refinery utilization on the East Coast declined to 89.3% from 90.0% the previous week, with crude oil inputs rising by 8,000 bpd to 826,000 bpd, the EIA reported.

EIA: PADD 5 Gasoline, Distillate Fuel Oil Stocks Decline

U.S. West Coast jet fuel inventories climbed last week while crude oil, gasoline and distillate stocks declined, Energy Information Administration data showed Wednesday (5/20).
Motor gasoline inventories in the PADD 5 fell by 400,000 bbl to 27.9 million bbl during the week ended May 15, after climbing the prior week, the EIA’s Weekly Petroleum Status Report showed. Year-over-year, gasoline stocks in the region were higher by 800,000 bbl.
PADD 5 gasoline imports fell by 30,000 bpd to 91,000 bpd last week and were 150,000 bpd lower compared with the same week last year.

Distillate fuel oil inventories in the region dropped by 200,000 bbl to 10 million bbl during the week profiled and were 300,000 bbl lower than the volume reported in the same period last year, EIA data showed. Distillate imports climbed by 10,000 bpd to 18,000 bpd on the week but were 29,000 bpd lower than the same week in 2024.
Jet fuel stocks in the West Coast climbed by 400,000 bbl to 11 million bbl and were 200,000 bbl higher than a year ago. Imports surged by 64,000 bpd to 89,000 bpd last week and were 65,000 bpd higher year-over-year.
Crude oil inventories in PADD 5 declined by 1.5 million bbl to 43.8 million bbl and were 7.7 million bbl lower than the same week last year. Crude imports in PADD 5 dropped by 350,000 bpd to 862,000 bpd on the week and were 66,000 bpd lower year-over-year.
Refinery utilization in the West Coast climbed to 81.8% from 81.6% the prior week, according to EIA data.

EIA: PADD 3 Distillate Stocks Rebound From 3-Year Low

U.S. Gulf Coast (PADD 3) distillate fuel oil inventories increased during the week ended May 15 after falling to a more than three-year low the prior week, while gasoline inventories declined, jet fuel balances moved lower, and crude oil stocks continued to fall, according to data released Wednesday (5/20) by the U.S. Energy Information Administration.

PADD 3 distillate fuel oil inventories, the feedstock for diesel, increased by 2.6 million bbl to 41.6 million bbl in the profiled week and remained below the 43.2 million bbl recorded in the same week last year. Despite the increase, inventories remained near historically tight levels after falling to 38 million bbl two weeks earlier, the lowest level since the week ended March 17, 2023.

Jet fuel inventories in PADD 3 declined by 1.6 million bbl to 14.4 million bbl during the reference week and were 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 declined by 800,000 bbl to 79.6 million bbl and were below the 85.0 million bbl reported in the same week last year. Motor gasoline imports into the Gulf Coast averaged zero bpd last week compared with 16,000 bpd in the prior week and 26,000 bpd during the comparable week last year.

Crude oil stocks in PADD 3 declined by 4 million bbl week-over-week to 259.2 million bbl and remained above the 251.3 million bbl recorded in the same week of 2025. Imports into the Gulf Coast increased by 415,000 bpd to 1.549 million bpd and were above the 1.091 million bpd recorded in the comparable week last year.

Refinery utilization on the Gulf Coast increased to 97.2% from 96.4% the previous week, while crude oil inputs slipped by 66,000 bpd to 9.341 million bpd, EIA data showed

PADD 2 Gasoline Stocks Remain at 6-Month Low

Midwest gasoline inventories fell for the fifth consecutive week, sliding to a fresh six-month low, while regional distillate, jet fuel, and crude oil stocks also declined, according to data released by the U.S. Energy Information Administration (EIA) on Wednesday (5/20).
Motor gasoline inventories in the PADD 2 region decreased by 600,000 bbl to 45.0 million bbl during the week ended May 15, the EIA data showed. This was below the 47.8 million bbl recorded in the same week last year and marked the lowest level since late November 2025.
Total motor gasoline imports into the Midwest averaged zero bpd, unchanged from the prior week but below the 11,000 bpd imported in the comparable week of the prior year.
Distillate fuel oil inventories in PADD 2 fell by 400,000 bbl on the week to 23.8 million bbl, the EIA data showed. This level left the regional inventory matching the 23.8 million bbl reported in the same week of the previous year. Distillate fuel oil imports averaged 17,000 bpd, down from 4,000 bpd the prior week and below the 11,000 bpd imported a year earlier.
Jet fuel inventories in the Midwest dipped by 200,000 bbl to 6.8 million bbl and were below the 7.1 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 2.7 million bbl to 108.5 million bbl during the reference week, the EIA data showed. Year-on-year, regional crude oil inventories rose by 2.0 million bbl. Crude oil imports into the Midwest averaged 2.916 million bpd during the reference week, compared with 2.878 million bpd the prior week and 2.947 million bpd reported in the same week of the prior year.

Motiva’s Port Arthur Refinery Reports Emissions Event

Motiva Enterprises reported Monday (5/19) an 8.5-hour emissions event at a pump facility of its 640,500 bpd Port Arthur Refinery in Port Arthur, Texas.

The event began at 12:00 a.m. CT Monday (5/19) and ended at 8:30 a.m. CT, Motiva said in a filing with the Texas Commission on Environmental Quality.

According to the details of the event, the refinery experienced a loss of primary containment that resulted in a crude oil release from underground piping at Pump House 57, which is responsible for transferring crude oil, unfinished gasoline and various liquid feedstocks to storage areas, processing units or marine loading docks.

Estimated emissions during the event included approximately 547 pounds of nonane, 544 pounds of octane, 501 pounds of heptane, 459 pounds of decane hydrocarbons and 302 pounds of hexane, among other hydrocarbon compounds.

The company said operations personnel took action to stop the loss of containment and minimize air emissions.

Motiva, a subsidiary of Saudi Aramco, operates the largest refinery in North America, producing gasoline, jet fuel and ultra-low sulfur diesel.

DTN reached out to Motiva for additional details but did not get an immediate response.