U.S. Rack Gasoline Drops 6.9cts, First Decline This Week

DAVENPORT, FL (DTN) — Wholesale rack prices for gasoline across the United States moved lower Wednesday (3/11), as futures markets pulled back after the sharp rally earlier this week, with traders continuing to assess geopolitical risks tied to tensions involving Iran and broader Middle East developments.

Conventional unleaded gasoline rack prices averaged $2.7597 gallon, a decline of 6.88cts from Tuesday’s $2.8285 gallon, according to DTN data. The pullback follows Monday’s sharp increase, when the national average surged nearly 9.75cts from the prior session as crude and refined product futures rallied.

Nationwide ultra-low sulfur diesel (ULSD) rack prices averaged $3.4230 gallon, dropping 21.90cts from Tuesday’s $3.6420 gallon. The decline marked the second consecutive session of losses for diesel racks following last week’s steep advance, when ULSD prices surged more than $1 gallon week-over-week.

On gasoline racks, PADD 5 posted the largest decline, falling 17.59cts to $3.3606 gallon, followed by PADD 1, down 9.81cts to $2.4289 gallon. PADD 2 declined 8.01cts to $2.3031 gallon, while PADD 3 slipped 7.28cts to $2.3979 gallon. PADD 4 saw the smallest drop, easing 0.82cts to $2.5776 gallon, the same data showed.

Compared with the national average of $2.7597 gallon, all regions traded at a discount except PADD 5, which stood at a 60.09cts premium to the U.S. benchmark. The deepest discount was seen in PADD 2 at 45.66cts below the national average, followed by PADD 3 at 36.18cts, PADD 1 at 33.08cts, and PADD 4 at 18.21cts below the benchmark.

ULSD racks moved lower across most regions. The largest decline occurred in PADD 1, where prices fell 24.67cts to $3.5221 gallon. PADD 3 dropped 23.40cts to $3.3446 gallon, while PADD 5 declined 21.55cts to $3.9507 gallon. PADD 2 fell 19.96cts to $3.2468 gallon, while PADD 4 posted the smallest decrease, slipping 6.97cts to $3.4184 gallon.

Relative to the national ULSD rack average of $3.4230 gallon, PADD 5 held the strongest premium at 52.77cts, followed by PADD 1 at 9.91cts above the U.S. benchmark. PADD 4 traded nearly in line with the national average, standing 0.46cts below, while PADD 3 and PADD 2 traded at discounts of 7.84cts and 17.62cts, respectively.

In the futures market, refined products continued to trade below the highs reached earlier this week as markets reassessed geopolitical risks tied to developments in the Middle East. The front-month NYMEX ULSD April contract traded roughly 32cts below the peak reached Monday (3/9), while NYMEX RBOB gasoline for April hovered about 24cts below levels seen earlier that same session. Meanwhile, WTI crude traded roughly $30 barrel below Monday’s spike, reflecting some easing in risk premium after the sharp rally earlier in the week.