MARKETWIRE ALERTS

MARKETWIRE ALERTS 

MarketWire Afternoon News for December 16th

Updated at 5:00 PM ET 

HEADLINES:

— API: U.S. Crude Draw Deepens; Gasoline, Distillates Build

— Shell Waterflood Project to Add 60M Bbl to Output

— EIA: U.S. Retail Diesel Prices Down 5.8cts on Week

— BLS: US Added 64K Jobs in Nov; Jobless Rate at 4.6%

— EIA: U.S. Retail Gasoline Average Falls 4.5cts on Week

NEWS:

API: U.S. Crude Draw Deepens; Gasoline, Distillates Build

U.S. crude oil inventories declined sharply last week, marking a second consecutive weekly draw, while gasoline and distillate stockpiles increased, according to American Petroleum Institute (API) data released late Tuesday (12/16).

U.S. commercial crude oil stocks fell by 9.3 million bbl during the week, according to API data. The draw extends the prior week’s decline of 4.8 million bbl reported by API.

The crude draw for the profiled week accompanied a 510,000 bbl decline at the Cushing, Oklahoma, delivery point for NYMEX West Texas Intermediate futures, following a 890,000 bbl draw the previous week.

Gasoline inventories rose by 4.8 million bbl, following a 7 million bbl build in the prior week.

Distillate fuel oil stocks increased by 2.5 million bbl, after a 1 million bbl rise the previous week.

Shell Waterflood Project to Add 60M Bbl to Output

Shell Offshore Inc said Tuesday (12/16) it has approved a waterflood project at its Kaikias field in the U.S. Gulf of Mexico to add approximately 60 million bbl to its recoverable resources.

The process, to be carried out on the Shell-operated Ursa platform within the Mars Corridor, involves injecting water to displace additional oil toward existing production wells in the reservoir, the company said in a news release.

The first water injection is scheduled to commence in 2028 and the entire recovery effort is expected to extend the Ursa platform’s producing life by several more years, according to the release.

The unspecified investment will support Shell’s strategy to maximize value from existing infrastructure in core deepwater assets and sustaining liquids production near 1.4 million bpd through 2030, the release added.

EIA: U.S. Retail Diesel Prices Down 5.8cts on Week

The national average price for retail diesel fuel fell by 5.8cts as of Monday (12/15) amid decreases in most U.S. regions despite freezing temperatures bolstering demand for distillates-reliant heating, pricing data released Tuesday (12/16) by the Energy Information Administration (EIA) showed.

The national average for retail diesel fuel stood at $3.607 gallon, after its second straight weekly decline. But that average was still up 11.3cts year-on-year, according to the EIA pricing data.

Lower diesel supply versus 2024 has kept year-on-year prices supported despite weekly variances. Freezing temperatures ahead of the official December 21 start to the 2025/26 winter season have also limited in some regions the downside in diesel prices, a proxy for heating oil.

In the Midwest (PADD 2), diesel prices dropped by 6.8cts to $3.567 gallon in the week ended December 15, posting one of the larger weekly declines among all PADD regions, while standing 11.7cts higher than the same week last year, as softer freight activity outweighed typical winter support.

The East Coast (PADD 1) saw average diesel prices move lower by 2.6cts to $3.703 gallon as of December 15, while staying 12.8cts above the same period last year, as colder temperatures began to lift heating oil demand in the region.

On the East Coast as well, weekly diesel prices in New England (PADD 1A) increased by 2.4cts to $4.064 gallon, while staying up 31cts year-on-year, in a region more directly exposed to winter heating demand that draws from the distillate pool.

In the Central Atlantic (PADD 1B), diesel slipped by 0.4cts to $3.944 gallon, while being 18.3cts higher on the year.

In the Lower Atlantic (PADD 1C) – where milder temperatures limited winter-driven demand – diesel fell by 3.7cts to $3.58 gallon, while remaining up 9.3cts year-on-year.

In the Gulf Coast (PADD 3), weekly average diesel prices declined by 6cts to $3.267 gallon, while holding 7.7cts above year-ago levels, supported by ample refining capacity and steady supply.

The Rocky Mountain region (PADD 4) dropped by 11.3cts to $3.385 gallon, marking the largest weekly decline among all regions, while remaining 2.8cts above the same period last year, despite colder weather in parts of the region.

West Coast (PADD 5) weekly average diesel prices fell by 7.6cts to $4.294 gallon, while marking a 16.4cts year-on-year rise, as winter-grade diesel production and higher costs continued to influence prices.

Diesel prices at West Coast less California decreased by 7.3cts to $3.871 gallon last week, while being 14.5cts above levels from a year earlier.

California retail diesel prices declined by 8.1cts to $4.781 gallon on the week but stood 18.4cts higher year-on-year, reflecting both seasonal demand and ongoing supply constraints.

BLS: US Added 64K Jobs in Nov; Jobless Rate at 4.6%

U.S. nonfarm employment rose by 64,000 in November, the Bureau of Labor Statistics (BLS) reported Tuesday (12/16), beating a forecast of 50,000 growth. But the jobless rate spiked to a near four-year high, reflecting a generally difficult labor market.

The nonfarm payrolls report for last month, delayed by the record-long federal government shutdown between October and mid-November, was also lower than September’s revised jobs growth of 108,000.

September is the prior reference month for nonfarm payrolls since the BLS did not issue an October report on this due to the government shutdown. The agency initially put September’s jobs growth at 119,000.

The unemployment rate swelled to 4.6% in November, matching the jobless reading from October 2022, during the post-pandemic economic recovery.

Analysts noted that the unemployment rate rose despite efforts by the Federal Reserve to prop up the labor market with interest rate cuts and expected the central bank to continue with monetary easing to help its target.

“The rise in the unemployment rate is something to keep an eye on and will keep the hopes of another [rate cut] alive,” Jeff Schulze, head of Economic and Market Strategy at ClearBridge Investments, said, adding that the payrolls report had a dovish tone for Fed monetary policy in 2026. The U.S. dollar weakened following the release, with the index falling by 0.3% to 97.65.

According to the BLS, the labor force participation rate inched higher to 62.5% from 62.4% in September, and the employment-population ratio at 59.6% was little changed too.

In November, average hourly earnings for all employees on private nonfarm payrolls rose by five cents, or 0.1%, to $36.86. Over the past 12 months, average hourly earnings increased by 3.5%, BLS said.

Job gains were primarily seen in familiar areas of ambulatory health care services (24,000 jobs), hospitals (11,000) and nursing and residential care facilities (11,000). Construction employment was the outlier, growing by 28,000 jobs.

Job losses were mainly in transportation and warehousing (18,000), courier and messenger services (18,000). The federal government shed 6,000 jobs, continuing with a trend noted earlier in the year due to massive civil servant layoffs instituted by the Trump administration.

EIA: U.S. Retail Gasoline Average Falls 4.5cts on Week

The national average for retail regular gasoline declined in the week ended December 15, with prices falling in every major U.S. region, data from the Energy Information Administration showed Tuesday (12/16).
The U.S. average for regular gasoline fell by 4.5cts to $2.895 gallon last week, standing 12.1cts lower from the same week last year, the EIA’s weekly update on fuel pricing showed.
East Coast (PADD 1) gasoline slipped 5cts to $2.842 gallon in the week ended December 15, while sitting 14.9cts lower than the same period last year.
Within the East Coast, New England (PADD 1A) prices decreased 1.9cts to $2.925 gallon week over week and were 5.6cts lower year-on-year.
Central Atlantic (PADD 1B) gasoline prices dropped 2.3cts to $3.012 gallon last week, while standing 7.6cts lower than the same week last year.
Lower Atlantic (PADD 1C) gasoline prices dipped 7.3cts to $2.716 gallon in the profiled week and were 21.7cts lower than the previous year.
Midwest (PADD 2) prices eased 3cts to $2.69 gallon, standing 19.4cts below the same period the previous year.
Prices for the same product in the Gulf Coast (PADD 3) edged 0.1cts lower to $2.492 gallon, standing 7cts lower than last year.
Rocky Mountain (PADD 4) gasoline tumbled by 9.7cts to $2.547 gallon in the reference week, standing 29.2cts lower year-on-year.
West Coast (PADD 5) gasoline prices slid 10.5cts to $3.851 gallon, but stood 6.6cts higher than the corresponding week of last year.
Gasoline prices at West Coast less California decreased 10.7cts to $3.501 gallon in the reference week, while standing 5.6cts higher year-on-year.