MARKETWIRE ALERTS

MARKETWIRE ALERTS 

MarketWire Afternoon News for January 27th:

Updated at 5:00 PM ET 

HEADLINES:

—  API: Crude, Gasoline Draw on Week; Distillates Resume Rise

—  USWC Refining Supply Risks Up as January Flares Spike

—  EIA: Global Tanker Rates Off From 2025 High as Demand Dips

—  EIA: U.S. Retail Diesel Prices Up 9.4cts on Week

—  EIA: U.S. Retail Gasoline Average Rises 4.7cts on Week

—  CB: US Consumer Confidence Drops to 12-Year Low in January

NEWS:

API: Crude, Gasoline Draw on Week; Distillates Resume Rise

U.S. crude oil stockpiles declined last week along with gasoline inventories while distillate stocks returned to builds, according to inventory data released by the American Petroleum Institute (API) on Tuesday (1/27).

U.S. commercial crude oil stocks fell by 247,000 bbl during the week ended January 23, against market expectations for a 1.45 million bbl build after the 3 million bbl increase the prior week.

The crude inventory draw for the profiled week was accompanied by a 92,000 bbl decline at the Cushing, Oklahoma delivery point for NYMEX West Texas Intermediate futures. In the prior week, Cushing inventories saw a 1.2 million bbl increase.

On the gasoline front, inventories declined by 415,000 bbl, contrary to the 6.2 million bbl build reported the prior week.

Distillate fuel oil stocks rose by 2 million bbl, versus the prior week’s 33,000 bbl draw. The change put distillates back on an upward trend, with inventory gains in nine out of the last ten weeks.

USWC Refining Supply Risks Up as January Flares Spike

At least eight flaring events have been reported by U.S. West Coast refineries since the start of this year, a third more than in January 2025, with the closure of two refineries expected to cut the region’s processing capacity by 17% by April.

Analysts are raising the flag on supply volatility and price swings for refined products if this elevated trend of operational stress persists throughout the first quarter.

So far in January, PBF Energy’s 166,000 bpd Torrance, California refinery has accounted for the majority of the flare incidents, making at least six filings with the South Coast Air Quality Management District (AQMD).

Five incidents at Torrance were reported from January 15 through January 21 as emergency events, while one was cited as a planned flare related to startup and shutdown issues triggered by mechanical problems.

Meanwhile, Phillips 66 reported a planned flaring event at its 139,000 bpd Wilmington refinery that began in mid-January. Despite a close scheduled end of last year, the refinery remains open, AQMD filings show.  Phillips 66 officials told DTN on Tuesday (1/27) that active fuel production stopped at Wilmington at the end of 2025 and units there have been under maintenance since.

As of Tuesday, the eight flaring events for this month compare with the six for January 2025, tracked from combined filings made to the AQMD and the Bay Area Air Quality Management District.

The elevated activity comes as California’s refining system faces a major contraction. On January 6, Valero announced plans to idle its 145,000-bpd Benicia refinery by April. Valero said it will rely on inventories and imports to supply the Northern California market once operations at Benicia are fully idled.

With fewer operating refineries, unplanned outages and repeated flare incidents could amplify supply concerns and fuel price swings, according to market traders and regional energy analysts. “Probably more volatility in 2026,” one trader remarked, citing refinery issues, fewer operating plants, and thinner trading activity.

Fuel pricing for January already reflects sensitivity to West Coast supply conditions.

Los Angeles jet fuel basis firmed by 15cts on January 23 after a brief lull, despite remaining well below multi-year highs reached earlier in the month.

West Coast jet fuel inventories were unchanged at 11.2 million bbl in the most recent reference week and stood 1 million bbl below last year.

EIA: Global Tanker Rates Off From 2025 High as Demand Dips

Global crude oil tanker rates have dropped from the multi-year highs of 2025 due to seasonal declines in demand, although they remain elevated historically, the U.S. Energy Information Administration (EIA) said in an analysis published Tuesday (1/27).

Rates for Very Large Crude Carriers (VLCCs) traveling from the Persian Gulf to Asia dropped by 43% between November 2025 and January 2026, the EIA noted.

The decline was more pronounced with vessels headed for the U.S. Gulf Coast, which saw a 55% decrease in shipping costs over the same period.

Suezmax tanker rates also showed signs of softening across major routes, with costs from the U.S. Gulf Coast to Europe falling by 10% in early January and Black Sea to Mediterranean dipping 2%.

VLCCs are the largest vessels, typically holding 2 million barrels, while Suezmax tankers are mid-sized ships carrying roughly 1 million barrels through the Suez Canal.

VLCCs traveling from the Persian Gulf to the U.S. Gulf Coast reached a peak cost of $21.57 per metric ton in late 2025. Suezmax rates from the U.S. Gulf Coast to Europe hit $27.91 per metric ton, up 107% year-on-year.

The downward trend in crude transportation costs arrives as demand for tankers declines after the seasonal highs of late 2025. Tanker demand is typically high in October and November as East Asia countries build up heating oil and diesel inventories while adjusting to agricultural output from the fall harvest season.

Despite the double-digit drops, the analysis showed Suezmax rates remained at elevated levels compared with historical averages after a volatile year for energy logistics.

EIA: U.S. Retail Diesel Prices Up 9.4cts on Week

The U.S. Energy Information Administration reported Monday that retail diesel prices jumped 9.4 cents on the week to $3.379 a gallon, though still 5.9cts below year-ago levels.

The national average diesel price has not been higher since mid-December, when it stood at $3.384 gallon.

The past weekend saw more than a foot of snow dumped in some areas of the Midwest and Northeast during Winter Storm Fern. Bitterly cold temperatures are expected to have boosted heating demand and contributed to price increase.

California diesel prices edged up 7.6cts on the week to $4.326 gallon, while dipping by 3.0cts from a year earlier.

Gulf Coast diesel prices jumped 9.0cts to $3.101 gallon, while falling by 11.5cts on the year.

East Coast diesel prices climbed 9.9cts to $3.477 gallon, though down 3.8cts from a year ago.

Midwest diesel prices surged 13.4cts on the week to $3.378 gallon, while sliding by 3.2cts on the year.

Rocky Mountain diesel prices increased 12.1cts to $3.387 gallon, while dropping by 3.5cts from a year earlier.

On a four-week rolling average basis, which smooths out weekly volatility, weekly average diesel prices climbed by 7.7cts to $3.325 gallon, though remaining 5.3cts below year-ago levels due to ample refining capacity and steady supply.

The four-week average for California diesel prices increased by 6.4cts on the week to $4.287 gallon, while slipping 6.4cts on the year.

Gulf Coast diesel prices on a four-week basis jumped 8.9cts to $3.058 gallon, while falling by 10.8cts from a year ago.

The four-week average for diesel prices in the West Coast region excluding California increased by 16.2cts – the most for the week – to $3.595 gallon, while declining by 0.5ct on the year.

EIA: U.S. Retail Gasoline Average Rises 4.7cts on Week

The national average for retail regular gasoline moved higher in the week ended January 26, with prices increasing across most major regions, data from the U.S. Energy Information Administration showed Tuesday (1/27).
The U.S. average for regular gasoline rose by 4.7cts to $2.853 gallon last week, standing 25.0cts lower compared to the same week last year, the EIA’s weekly update on fuel pricing showed.
East Coast (PADD 1) gasoline increased by 3.8cts to $2.801 gallon in the week ended January 26, while remaining 27.5cts lower than the same period last year.
Within the East Coast, New England (PADD 1A) prices declined by 0.6cts to $2.784 gallon week-over-week, standing 23.5cts below the same week of 2025.
Central Atlantic (PADD 1B) gasoline prices fell 1.9cts on a weekly basis to reach $2.885 gallon last week, 32.1cts under last year’s price.
Lower Atlantic (PADD 1C) gasoline prices climbed by 8.6cts to $2.753 gallon in the profiled week, 25.4cts lower than 2025 levels.
Midwest (PADD 2) prices spiked by 4.5cts to $2.693 gallon last week, down 25.3cts compared to the same period of the previous year.
Prices for the same product at the Gulf Coast (PADD 3) rose by 5.8cts to $2.455 gallon, 24.1cts lower than last year.
Rocky Mountain (PADD 4) gasoline rose by 4.2cts to $2.536 gallon, remaining 38.4cts below year-ago levels.
West Coast (PADD 5) gasoline prices increased by 4.8cts to $3.705 gallon, 17.6cts lower than the corresponding week of last year.
Gasoline prices at West Coast less California rose by 1.8cts to $3.313 gallon, remaining 19.8cts lower year-on-year.

CB: US Consumer Confidence Drops to 12-Year Low in January

U.S. consumer confidence in January cratered to its lowest since 2014 from anxiety over rising living costs, the Conference Board said in a survey report published Tuesday (1/27).

“References to prices and inflation, oil and gas prices, and food and grocery prices remained elevated,” Dana M. Peterson, chief economist at the board, said, citing comments from respondents to its survey.

Developments in tariffs and trade also dominated the concerns of U.S. consumers, as did politics, labor, health, insurance and war issues, Peterson said.

The Conference Board’s headline confidence index dropped to 84.5 this month, reinforcing a trend seen since August and briefly interrupted only in December, when it was revised up 5.1 points to 94.2.

Peterson noted that all five components of the index deteriorated in January, driving the overall Index to its lowest level since May 2014 to 82.2 — a reading that surpassed its COVID-19 pandemic depths.

The confidence index is a gauge of the household optimism that fuels roughly 70% of the U.S. economy through personal spending and is closely watched by market analysts.

Consumers’ assessments of their current economic situation – the present situation index – tumbled by 9.9 points to 113.7, the lowest since 2021. The expectations index fell 9.5 points to 65.1, well below the 80-point threshold that in the past had signaled a recession ahead.

The U.S. dollar index extended its decline following the release of the report, slumping to 96.1 against a basket of foreign currencies, down 0.757 points on the day.