U.S. Rack ULSD Falls 14cts; Gasoline Edges Higher

DAVENPORT, FL (DTN) – Wholesale rack prices for ultra-low sulfur diesel (ULSD) declined Monday (4/13) while gasoline moved modestly higher, diverging from stronger futures as markets reacted to renewed geopolitical escalation following the breakdown of ceasefire talks with Iran.

Nationwide ULSD rack prices averaged $4.0230 gallon, down 13.97cts from Friday’s $4.1627 gallon, according to DTN data. Conventional unleaded gasoline rack prices averaged $3.2630 gallon, up 3.75cts from $3.2255 gallon.

Futures prices moved sharply higher Monday morning. Front-month May NYMEX ULSD futures rose 33.04cts to $4.0920 gallon, while May RBOB gasoline futures increased 13.83cts to $3.1756 gallon. WTI crude for May delivery climbed $7.48 to $104.05 bbl.

The move higher in futures followed renewed tensions after peace talks between the U.S. and Iran failed over the weekend, with reports indicating the U.S. could move toward restricting access to Iranian ports. That shift has brought supply risk back into focus, particularly around flows tied to the Strait of Hormuz.

Despite the rebound in futures, rack prices showed a more mixed response, with diesel continuing to adjust lower after last week’s sharp pullback, while gasoline posted modest increases.

ULSD racks declined across most regions Monday. East Coast ULSD fell 16.72cts to $4.0110 gallon, while Midwest prices declined 13.41cts to $3.8944 gallon. West Coast values dropped 16.86cts to $5.0362 gallon, maintaining the strongest regional premium. Gulf Coast ULSD was reported at $3.9390 gallon, below the national average, while PADD 4 was the only region to move higher, rising 3.05cts to $4.1924 gallon.

Relative to the national ULSD rack average of $4.0230 gallon, PADD 5 held the widest premium at $1.0132 above the U.S. benchmark, followed by PADD 4 at 16.94cts above. PADD 1 traded near parity with the national average, while PADD 2 remained at a 12.86cts discount and PADD 3 at an 8.40cts discount.

On conventional unleaded gasoline racks, all regions moved higher Monday. East Coast gasoline rose 2.73cts to $2.9345 gallon, while Midwest prices increased 2.20cts to $2.7540 gallon. Gulf Coast values edged up 0.43cts to $2.9265 gallon, while Rocky Mountain prices climbed 3.78cts to $3.1653 gallon. West Coast gasoline recorded the largest increase, up 8.70cts to $3.8982 gallon, maintaining the only premium position.

Compared with the national gasoline average of $3.2630 gallon, PADD 5 remained the only region trading at a premium, at 63.52cts above the benchmark. All other regions held discounts, led by PADD 2 at 50.90cts below the national average, followed by PADD 1 at 32.85cts and PADD 3 at 33.65cts.

Premium gasoline rack prices increased across all regions, broadly in line with conventional gasoline. West Coast premiums remained elevated at $4.2489 gallon, while other regions posted more modest increases.

The divergence between higher futures and softer ULSD rack prices suggests physical markets are still working through last week’s adjustment, even as paper markets begin to rebuild risk premium tied to renewed geopolitical uncertainty. At the same time, structure remains supportive, with ULSD backwardation above 24cts and RBOB above 8cts, indicating prompt supply remains relatively tight despite the recent volatility.