U.S. Rack ULSD Falls 9.13cts; Gasoline Down 7.77cts
9/14 7:18 AM
U.S. Rack ULSD Falls 9.13cts; Gasoline Down 7.77cts
Miguel E. Andujar
DTN Refined Fuels Market Reporter
DAVENPORT, FL (DTN) -- Volatility continued in U.S. wholesale rack markets
Monday (9/14), with ultra-low sulfur diesel (ULSD) and gasoline prices falling
across all five PADDs even as crude oil and refined-product futures rallied on
renewed Middle East supply concerns.
Nationwide ULSD rack prices averaged $5.2584 gallon, down 9.13cts from the
previous trading session's $5.3496 gallon, according to DTN data.
Conventional unleaded gasoline rack prices averaged $3.4255 gallon, down
7.77cts from Friday's $3.5032 gallon.
The decline in rack prices contrasted with a strong futures rally Monday
after drone strikes on Friday forced the shutdown of Saudi Arabia's East-West
pipeline, which carries about 4 million bpd of crude to Red Sea export
terminals and provides an alternative route around the Strait of Hormuz.
NYMEX WTI futures traded above $103 bbl Monday morning, while front-month
ULSD advanced above $5 gallon. Refining margins also remained elevated, with
the diesel crack trading above $109 bbl and the gasoline crack near $64 bbl,
maintaining strong incentives for refiners to maximize fuel production.
The weaker rack prices were reflected across regional ULSD markets. Midwest
values posted the largest decline, falling 13.37cts to $5.1718 gallon, followed
by West Coast prices, which dropped 12cts to $5.9097 gallon. Gulf Coast ULSD
fell 9.05cts to $5.1062 gallon, Rocky Mountain values declined 8.71cts to
$5.3314 gallon and East Coast prices slipped 4.33cts to $5.0932 gallon. PADD 5
maintained the widest premium to the national average at 65.13cts, while PADD 1
held the largest discount at 16.52cts.
Gasoline racks also fell across all five regions. Gulf Coast values posted
the largest decline, dropping 9.66cts to $3.2496 gallon, followed by West Coast
prices, which fell 8.60cts to $4.1318 gallon. East Coast gasoline declined
7.77cts to $3.2722 gallon, Midwest values fell 6.14cts to $3.2170 gallon and
Rocky Mountain prices dropped 4.48cts to $3.9673 gallon.
The rack decline came despite stronger RBOB futures, which surged more than
13cts Monday morning to trade above $3.44 gallon. PADD 5 maintained the largest
gasoline premium to the national average at 70.63cts, while PADD 2 held the
widest discount at 20.85cts.
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