U.S. Rack ULSD Prices Jump 29.9cts as Oil Rally Extends

DAVENPORT, FL (DTN) — Wholesale rack prices for gasoline and diesel across the United States moved sharply higher Friday as geopolitical tensions tied to Iran continued to inject risk premium into global oil markets, extending increase seen earlier this week.

Nationwide ultra-low sulfur diesel (ULSD) rack prices averaged $3.6983 gallon, rising 29.87cts from Thursday’s $3.3996 gallon, according to DTN data. Compared with last Friday, ULSD racks are $1.0353 gallon higher, reflecting the sharp rise in futures and crude benchmarks over the past week.

Meanwhile, conventional unleaded gasoline rack prices averaged $2.7306 gallon, an increase of 13.93cts from Thursday’s $2.5913 gallon.

On gasoline racks, PADD 5 posted the largest increase, rising 22.53cts to $3.3578 gallon, followed by PADD 2, up 15.59cts to $2.2685 gallon. PADD 4 climbed 14.94cts to $2.3954 gallon, while PADD 3 increased 12.11cts to $2.3233 gallon. PADD 1 saw the smallest gain, rising 9.46cts to $2.3445 gallon, the same data showed.

Compared with the national average of $2.7306 gallon, all regions traded at a discount except PADD 5, which stood at a 62.72cts premium to the U.S. benchmark. The deepest discount was seen in PADD 2 at 46.21cts below the national average, followed by PADD 3 at 40.73cts, PADD 1 at 38.61cts, and PADD 4 at 33.52cts below the benchmark.

ULSD racks also advanced across all five PADDs, with the sharpest increase recorded in PADD 1, where prices climbed 32.62cts to $3.8734 gallon. PADD 3 rose 32.19cts to $3.6906 gallon, followed by PADD 5, up 31.36cts to $4.1779 gallon. PADD 4 increased 29.55cts to $3.3006 gallon, while PADD 2 posted the smallest rise, up 25.54cts to $3.4681 gallon.

Relative to the national ULSD rack average of $3.6983 gallon, PADD 5 held the strongest premium at 47.96cts, followed by PADD 1 at 17.51cts above the U.S. benchmark. PADD 3 traded nearly in line with the national average at a 0.77cts discount, while PADD 2 and PADD 4 were 23.02cts and 39.77cts below the national average, respectively.

In the futures market, the front-month NYMEX ULSD contract for April delivery traded at $3.7027 gallon, up 8.85cts, while NYMEX RBOB gasoline for April rose 2.95cts to $2.7004 gallon. Crude benchmarks also remained elevated, with WTI trading more than $8 barrel above last week’s close, reflecting continued geopolitical risk tied to developments in the Middle East.