U.S. Rack ULSD Rises 19.4cts as Supply Concerns Persist

DAVENPORT, FL (DTN) — Wholesale rack prices for ultra-low sulfur diesel (ULSD) across the United States moved higher Friday (3/13), extending the week’s upward trend even as energy futures eased from earlier highs amid ongoing geopolitical tensions in the Middle East.

Nationwide ultra-low sulfur diesel (ULSD) rack prices averaged $3.8661 gallon, rising 19.43cts from Thursday’s $3.6718 gallon, according to DTN data. Compared with last Friday, when ULSD racks averaged $3.6983 gallon, prices are 16.78cts higher, reflecting continued volatility across crude and refined product markets.

Conventional unleaded gasoline rack prices averaged $3.0709 gallon, an increase of 16.90cts from Thursday’s $2.9019 gallon. Compared with last Friday’s national average of $2.7306 gallon, gasoline racks are 34.03cts higher.

ULSD racks moved higher across most regions where data was available. The largest increase occurred in PADD 3, where prices climbed 23.86cts to $3.8487 gallon, followed by PADD 1, up 23.03cts to $4.0354 gallon. PADD 4 rose 16.35cts to $3.7927 gallon, while PADD 5 increased 10.79cts to $4.3520 gallon. Data for PADD 2 distillate racks was not available in Friday’s source alerts.

Relative to the national ULSD rack average of $3.8661 gallon, PADD 5 held the strongest premium at 48.59cts above the U.S. benchmark, followed by PADD 1 at 16.93cts above the national average. PADD 3 and PADD 4 traded slightly below the national average at discounts of 1.74cts and 7.34cts, respectively.

On gasoline racks, PADD 5 posted the largest increase, rising 29.97cts to $3.6806 gallon. PADD 3 followed with an 18.50cts increase to $2.7418 gallon, while PADD 1 climbed 17.49cts to $2.7443 gallon. PADD 4 rose 16.47cts to $2.8900 gallon, and PADD 2 posted the smallest gain, increasing 6.54cts to $2.5023 gallon.

Compared with the national gasoline average of $3.0709 gallon, all regions traded at a discount except PADD 5, which stood at a 60.97cts premium to the U.S. benchmark. The deepest discount was seen in PADD 2 at 56.86cts below the national average, followed by PADD 3 at 32.91cts, PADD 1 at 32.66cts, and PADD 4 at 18.09cts below the benchmark.

In the futures market, energy contracts traded lower after the sharp rally earlier this week. The front-month NYMEX ULSD April contract traded at $3.8151 gallon, down 8.38cts, while NYMEX RBOB gasoline for April slipped 3.83cts to $2.9263 gallon. Meanwhile, WTI crude traded at $93.42 barrel, down $2.31, as markets continued to digest geopolitical developments in the Middle East following the recent surge in oil prices.