U.S. Rack ULSD Prices Jump 26.8cts on Tuesday

DAVENPORT, FL (DTN) — Wholesale rack prices for gasoline and diesel across the United States opened sharply higher Tuesday, extending gains from the prior session as supply concerns tied to escalating tensions in the Middle East continued to reverberate across physical and futures markets.

Nationwide ultra-low sulfur diesel (ULSD) rack prices were at $3.0042 gallon, up 26.82cts from Monday’s $2.7360 gallon, according to DTN data.

Meanwhile, conventional unleaded gasoline rack prices were heard at an average of $2.5050 gallon, an increase of 8.28cts compared to Monday’s national average of $2.4222 gallon.

On gasoline racks, PADD 5 posted the largest increase, rising 11.03cts to $2.9480 gallon, followed by PADD 4, up 9.00cts to $2.1376 gallon. PADD 1 climbed 8.04cts to $2.1246 gallon, while PADD 3 increased 6.67cts to $2.0916 gallon and PADD 2 rose 5.67cts to $2.0307 gallon, the same data showed.

Compared to the national average of $2.5050 gallon, all regions traded at a discount except for PADD 5, which stood at a 44.30cts premium to the U.S. average. The widest discount was seen in PADD 2, at 47.43cts below the national benchmark, followed by PADD 3 at a 41.34cts discount, PADD 4 at 36.74cts below, and PADD 1 at a 38.04cts discount.

ULSD racks also moved higher across all five PADDs, with the sharpest increase seen in PADD 1, where ULSD rose 28.85cts to $3.0798 gallon, followed by PADD 3, up 28.15cts to $2.8892 gallon. PADD 5 climbed 26.94cts to $3.4580 gallon, while PADD 2 and PADD 4 rose 23.81cts and 20.10cts, respectively.

Relative to the national ULSD rack average of $3.0042 gallon, PADD 5 held the strongest premium at 45.38cts above the U.S. average, while PADD 1 traded at a 7.56cts premium. The PADDs 2, 3 and 4 were at 9.98cts, 11.50cts and 23.97cts below the national average, in that order.

The front-month NYMEX ULSD futures contract rose by $0.2750 to $3.1754 gallon, a 9.30% increase on the session. The April NYMEX RBOB contract increased by $0.0871 to $2.4577 gallon, up 3.64%.