MARKETWIRE ALERTS

MARKETWIRE ALERTS 

MarketWire Afternoon News for May 21^st

Updated at 5:30 PM ET 

HEADLINES:

— LA Diesel Basis Spikes by 8cts on Active Trading

— SF CARBOB Basis Climbs 5cts on West Coast Supply Woes

— Valero Texas City Refinery Reports SO2 Emissions Event

— CEC: California Gasoline Stocks Rise 150,000 Bbl on Week

— CEC: California Diesel Stocks Fall 46,000 Bbl on Week

NEWS:

LA Diesel Basis Spikes by 8cts on Active Trading

MIAMI, FL (DTN) – Prompt Los Angeles ultra-low-sulfur diesel (ULDS) basis strengthened by 8cts on Thursday (5/21) supported by firm demand and limited supplies. 
The increase came as U.S. West Coast distillate supplies tightened, even as import volumes improved in the region last week, while the market also rolled into a new trading month.

Sources reported trades for June ULSD in Los Angeles at 43cts premiums to June New York Mercantile Exchange RBOB futures compared with 35cts premiums traded the prior day.

The hike was driven by supply tightness and Energy Information Administration data showing weekly distillate fuel oil inventories in PADD 5 fell by 200,000 bbl to 10.0 million bbl during the week ended May 15. Inventories were 300,000 bbl below the the volume reported year-over-year. ULSD imports in the region climbed by 10,000 bpd to 18,000 bpd in the same reference week, but volumes remained 29,000 bpd below the corresponding week in 2025.

SF CARBOB Basis Climbs 5cts on West Coast Supply Woes

The basis for regular San Francisco CARBOB strengthened Thursday (5/21) to a premium of 54cts gallon to benchmark RBOB futures as lower gasoline imports and ongoing Northern California refinery closures tightened regional supply expectations ahead of peak summer demand.

Regular San Francisco CARBOB’s basis climbed 5cts on the day, from its prior premium of 49cts gallon to the June RBOB contract on NYMEX.

Premium San Francisco CARBOB, meanwhile, maintained its typical 10cts spread over regular CARBOB during the session, which saw heightened activity as the market also rolled into a new trading month.

The higher basis levels came as the U.S. Energy Information Administration (EIA) reported that West Coast gasoline inventories slid during the week ended May 15. Motor gasoline inventories in the PADD 5 region fell by 400,000 bbl to 27.9 million bbl during the profiled week, after climbing the week prior.

While year-over-year gasoline stocks were higher by 800,000 bbl, the weekly drop still raised concerns in a market already on the edge over tightening supply fundamentals tied to declining imports and reduced California refining capacity.

PADD 5 gasoline imports also fell by 30,000 bpd to 91,000 bpd last week and were 150,000 bpd lower compared with the same week last year, reflecting weaker inbound supply flows into the West Coast market as summer grade gasoline demand continued to build.

Demand and price outlook for West Coast fuels have risen especially in the wake of the Iran war, which has stalled the flow of some 20 million of petroleum liquids from the Middle East – a major source of supply for Californian refineries.

Valero Texas City Refinery Reports SO2 Emissions Event

Valero’s 260,000 bpd Texas City Refinery reported an emissions event after an equipment malfunction triggered excess sulfur dioxide releases at its Complex 4 facility, according to a report filed with state regulators.

The incident began at 4:18 a.m. on Wednesday (5/20), and lasted approximately one hour before concluding at 5:18 a.m.

According to the initial report submitted to the Texas Commission on Environmental Quality, inclement weather contributed to an equipment issue within the Gas Oil Hydrotreating (GOHT) Unit, Train 1. The malfunction caused a unit upset, resulting in excess SO2 emissions released from incinerator G-18-1403.

The facility reported an estimated 823 pounds of sulfur dioxide were emitted during the event, significantly exceeding the authorized emission limit of 98.44 pounds per hour.

 The incident remains listed as open on the state’s reporting system.

CEC: California Gasoline Stocks Rise 150,000 Bbl on Week

California Energy Commission data show statewide gasoline inventories increased in the week ending May 15, as the agency continues to report only statewide totals in its Weekly Fuels Report released on Thursday (5/21).

Statewide gasoline stocks, including CARB reformulated, non-California, and blending components, climbed by 150,000 bbl to 9.954 million bbl, but remained 10% lower than last year.

Statewide gasoline production slipped by 26,000 bbl to 4.961 million bbl, while production remained 31% below last year’s levels.

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 Fall 46,000 Bbl on Week

California Energy Commission data show statewide diesel inventories declined in the week ending May 15, as the agency continues to report only statewide totals in its Weekly Fuels Report released on Thursday (5/21).

Statewide CARB diesel and other diesel fuel stocks fell by 46,000 bbl to 2.220 million bbl, and were 11% lower than last year.

Statewide diesel production climbed by 63,000 bbl to 1.275 million bbl, though production remained 12% below levels reported during the same period last year.

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.