U.S. Rack ULSD Up 11.2cts; Gasoline Rises 7.09cts

DAVENPORT, FL (DTN) – Wholesale rack prices for ultra-low sulfur diesel (ULSD) and gasoline moved higher Tuesday (4/21), reversing Monday’s sharp declines, as physical markets firmed alongside mixed futures amid continued uncertainty around U.S.-Iran negotiations.

Nationwide ULSD rack prices averaged $3.7124 gallon, up 11.2cts from Monday’s $3.6004 gallon, according to DTN data. Conventional unleaded gasoline rack prices averaged $3.2544 gallon, up 7.09cts from $3.1835 gallon.

Futures prices were mixed Tuesday morning. Front-month May NYMEX ULSD futures increased 2.04cts to $3.5613 gallon, while May RBOB gasoline futures rose 1.01cts to $3.1269 gallon. WTI crude for May delivery slipped $0.81 to $88.80 bbl.

Futures direction remained uneven as market participants weighed conflicting signals around the Iran conflict. Reports indicated that another round of talks between U.S. and Iranian officials may be approaching, though uncertainty remains with Tehran yet to confirm participation. With the current ceasefire set to expire Wednesday evening, prices swung on shifting expectations about whether talks can extend the pause in hostilities.

Rack prices moved higher across most regions Tuesday, reflecting a firmer physical tone following Monday’s sharp reset.

ULSD racks increased across all regions, with the largest moves in PADD 1 and PADD 3. East Coast ULSD rose 13.41cts to $3.7044 gallon, while Gulf Coast prices increased 13.41cts to $3.6704 gallon. Midwest values climbed 9.02cts to $3.5071 gallon, while West Coast ULSD rose 13.31cts to $4.5659 gallon, maintaining the strongest regional premium. Rocky Mountain prices posted the smallest increase, up 2.33cts to $4.0335 gallon.

Relative to the national ULSD rack average of $3.7124 gallon, PADD 5 held the widest premium at 85.35cts above the U.S. benchmark, followed by PADD 4 at 32.11cts above. PADD 1 traded near parity with the national average, while PADD 2 and PADD 3 remained at discounts of 20.53cts and 4.20cts, respectively.

On conventional unleaded gasoline racks, all regions moved higher Tuesday. Gulf Coast gasoline recorded the largest increase, rising 20.03cts to $2.9995 gallon. East Coast prices increased 7.29cts to $2.9527 gallon, while Midwest values climbed 5.49cts to $2.7322 gallon. Rocky Mountain gasoline rose 5.38cts to $3.1661 gallon, while West Coast prices increased 12.03cts to $3.9998 gallon, maintaining the only premium position.

Compared with the national gasoline average of $3.2544 gallon, PADD 5 remained the only region trading at a premium, at 74.54cts above the benchmark. All other regions held discounts, led by PADD 2 at 52.22cts below the national average, followed by PADD 1 at 30.17cts and PADD 3 at 25.49cts. PADD 4 traded just slightly below the national benchmark.

Premium gasoline rack prices also moved higher across all regions, broadly in line with conventional gasoline. West Coast premiums remained elevated at $4.4064 gallon, while other regions posted steady increases.

Physical markets appear to be catching up after Monday’s sharp decline, with rack prices rebounding even as futures remain choppy. While paper markets continue to react quickly to shifting headlines around negotiations and ceasefire prospects, rack values are adjusting more gradually as buying patterns and supply availability stabilize.

Even with the volatility, the structure for racks continues to signal that prompt supply is not overly loose. RBOB backwardation is holding above 7cts, while ULSD remains near an 8cts premium on the front month, indicating near-term demand remains supported despite the broader swings in price direction.