U.S. Rack ULSD Rises 10.4cts to Start Week as Risk Persists

DAVENPORT, FL (DTN) — Wholesale rack prices for ultra-low sulfur diesel (ULSD) across the United States moved higher Monday (3/16), extending last week’s upward momentum as geopolitical tensions tied to the Middle East continued to support refined product markets.

Nationwide ultra-low sulfur diesel (ULSD) rack prices averaged $3.9700 gallon, rising 10.39cts from Friday’s $3.8661 gallon, according to DTN data. The move follows last week’s rally in refined products as markets continued to price in geopolitical risk tied to developments surrounding the Strait of Hormuz.

Conventional unleaded gasoline rack prices averaged $3.1094 gallon, an increase of 3.85cts from Friday’s $3.0709 gallon.

ULSD racks moved higher across all regions where comparable data was available. The largest increase occurred in PADD 4, where prices climbed 12.27cts to $3.9154 gallon, followed by PADD 5, up 11.63cts to $4.5933 gallon. PADD 3 rose 11.58cts to $3.9645 gallon, while PADD 1 increased 11.21cts to $4.1475 gallon. Data for PADD 2 distillate racks was not available in Friday’s source alerts, though Monday values averaged $3.6883 gallon.

Relative to the national ULSD rack average of $3.9700 gallon, PADD 5 held the strongest premium at 62.33cts above the U.S. benchmark, followed by PADD 1 at 17.75cts above the national average. PADD 3 traded near parity with the national average, while PADD 4 and PADD 2 stood at discounts of 5.46cts and 28.17cts, respectively.

On gasoline racks, PADD 4 posted the largest increase, rising 8.62cts to $2.9762 gallon. PADD 1 climbed 6.52cts to $2.8095 gallon, while PADD 5 rose 5.32cts to $3.7338 gallon. PADD 3 increased 5.30cts to $2.7948 gallon, and PADD 2 posted the smallest gain, increasing 4.42cts to $2.6090 gallon.

Compared with the national gasoline average of $3.1094 gallon, all regions traded at a discount except PADD 5, which stood at a 62.44cts premium to the U.S. benchmark. The deepest discount was seen in PADD 2 at 50.04cts below the national average, followed by PADD 3 at 31.46cts, PADD 1 at 29.99cts, and PADD 4 at 13.32cts below the benchmark.

In the futures market, energy contracts were mixed Monday morning as traders assessed geopolitical developments in the Middle East. Market participants were awaiting the international community’s response to U.S. President Donald Trump’s call for a joint patrol of the Strait of Hormuz aimed at protecting oil tankers transiting the key shipping route for Middle Eastern crude exports. The front-month NYMEX ULSD April contract traded at $4.0103 gallon, down 0.44cts, while NYMEX RBOB gasoline for April slipped 3.3cts to $3.0081 gallon. Meanwhile, WTI crude traded at $94.94 barrel, up $3.76, as geopolitical risk continued to support crude prices.