MARKETWIRE ALERTS
MARKETWIRE ALERTS
MarketWire Afternoon News July 1st:
Updated at 5:00 PM ET
HEADLINES:
-- Midwest Diesel, Jet Fuel Basis Rise as Futures Fall
-- PNW Sub-Octane Basis Extends Losses on Offers
-- EIA: PADD 3 Gasoline Stocks Dip on Week, Jet Fuel Climbs
-- PNW Sub-Octane Basis Dips on New Month Roll
-- EIA: PADD 2 Gasoline Stocks Climb on Week, Jet Fuel Drops
-- Analysis: EIA Confirms Record Crude Production, Exports
-- EIA: PADD 1 Distillate Stocks Rebound From 1-Year Low
-- EIA: Ethanol Output Sets Seasonal Record, Up 3.8% on Yr
-- EIA: PADD 5 Gasoline Stocks Rise for 6th Week
-- EIA: Crude Stocks Lowest Since 2018; Products Mixed
-- EIA: Propane/Propylene Stocks Expand, Rise 20.7% on Year
NEWS:
Midwest Diesel, Jet Fuel Basis Rise as Futures Fall
Chicago and Group 3 ultra-low sulfur diesel (ULSD) basis firmed Wednesday
(7/1) as NYMEX futures slid and inventory data for the Midwest showed mixed
balances for distillate products.
Group 3 ULSD basis posted the sharpest move, strengthening 8cts gallon on
the day to a discount of 27cts gallon to the August NYMEX ULSD benchmark
contract. Chicago ULSD basis also strengthened, narrowing 3cts to a 32cts
gallon discount.
In the jet fuel market, Chicago basis was talked 4.5cts stronger at a 52cts
gallon discount to the front-month NYMEX ULSD futures contract. Group 3 jet
fuel differentials also firmed by a more modest 1ct to a 29cts gallon discount
against the same benchmark.
The U.S. Energy Information Administration reported on Wednesday a 300,000
bbl a weekly drop in regional jet fuel balances to 7.5 million bbl for the week
ended June 29.
Conversely, broader PADD 2 distillate fuel oil inventories rose by 600,000
bbl on the week to reach a total of 27.8 million bbl. Regional distillate
imports averaged 21,000 bpd, up by 16,000 bpd on the week to help fuel the
inventory build.
In futures trading, the NYMEX ULSD contract for August delivery edged down
$0.0989 to settle at $3.2179 gallon.
PNW Sub-Octane Basis Extends Losses on Offers
Pacific Northwest Portland sub-octane regular gasoline basis weakened
further Wednesday (7/1), falling by a total of 10cts on the day as successive
offers reflected continued softness in the regional gasoline market amid ample
supplies.
An offer was heard earlier in the session flat to August NYMEX RBOB futures,
bringing the Pacific Northwest Portland sub-octane regular gasoline basis to a
discount of 0.5cts, down 5cts from Tuesday's (6/30) last assessed level. Later
in the afternoon, another offer was heard at a 5cts discount to August NYMEX
RBOB futures, moving the basis down an additional 5cts to a discount of 5.5cts.
The basis was last seen at this level on June 23 2026, according to DTN data.
Regional gasoline market sentiment has remained soft in recent weeks there has
been no refinery flaring events or unplanned outages have been reported across
the U.S. West Coast, reducing concerns over potential supply disruptions that
had supported basis values earlier this spring.
Motor gasoline inventories in the PADD 5 region increased for the sixth
consecutive week, climbing by 300,000 bbl to 29.2 million bbl during the week
ended June 26, the EIA's Weekly Petroleum Status Report showed. Year-on-year,
gasoline stocks in the region were 700,000 bbl lower.
PADD 5 gasoline imports increased by 97,000 bpd to 165,000 bpd last week but
were 85,000 bpd lower than the same week last year. The continued inventory
build, coupled with higher imports and steady refinery operations, has helped
keep regional gasoline supply concerns in check.
EIA: PADD 3 Gasoline Stocks Dip on Week, Jet Fuel Climbs
U.S. Gulf Coast gasoline inventories dropped last week while distillate
stocks held steady and jet fuel balances rose, the Energy Information
Administration reported on Wednesday (7/1), citing data for the week ended June
26.
Motor gasoline inventories in the PADD 3 region fell by 2.2 million bbl to
76.5 million bbl during the reference week, the Weekly Petroleum Status Report
data showed. Year-on-year, gasoline stocks in the region were 9.6 million bbl
lower. The product's imports rose by 73,000 bpd from zero the prior week and
were 57,000 bpd higher compared with the same week last year.
Distillate fuel oil inventories in the same region were unchanged at 42.7
million bbl during the week profiled. The inventories were also unchanged from
the volume reported in the same period last year. PADD 3 reported no distillate
imports during the reporting week.
Weekly jet fuel stocks in the Gulf Coast rose by 1.7 million bbl to 16.8
million bbl. Inventories for these were 1.8 million bbl higher than a year ago.
PADD 3 reported zero jet fuel imports during the week ending June 26.
Crude oil inventories in PADD 3 declined by 2.3 million bbl to 237.5 million
bbl last week. The inventories were 2.6 million bbl higher than the same week a
year ago. Crude imports in PADD 3 decreased by 367,000 bpd to 807,000 bpd on
the week. The imports were 739,000 bpd lower year-on-year.
Refiner use of crude in the Gulf Coast stood at 9.613 million bpd for last
week, versus 9.4526 million the week prior and 9.261 million a year ago. The
rate of utilization was at 98.1% compared with the prior week's 96.7% and the
year-ago level of 95.2%.
PNW Sub-Octane Basis Dips on New Month Roll
Pacific Northwest sub-octane regular gasoline basis weakened Wednesday
(7/1), slipping by 5cts as the market transitioned into the new trading month
amid steady supply/demand balance.
An offer was heard flat to August NYMEX RBOB futures, bringing the Pacific
Northwest sub-octane regular gasoline basis to a discount of 0.5cts, down 5cts
from Tuesday's (6/30) last assessed level. The basis was last seen at a 0.5cts
discount on June 24, according to DTN data.
Regional gasoline market sentiment has remained soft in recent weeks as no
significant refinery flaring events or unplanned outages have been reported
across the U.S. West Coast, reducing concerns over potential supply disruptions
that had supported basis values earlier this spring.
Motor gasoline inventories in the PADD 5 region increased for the sixth
consecutive week, climbing by 300,000 bbl to 29.2 million bbl during the week
ended June 26, the EIA's Weekly Petroleum Status Report showed. Year-on-year,
gasoline stocks in the region were 700,000 bbl lower.
The product's imports increased by 97,000 bpd to 165,000 bpd last week but were
85,000 bpd lower than the same week last year. The continued inventory build,
coupled with higher imports and steady refinery operations, has helped keep
regional gasoline supply concerns in check.
EIA: PADD 2 Gasoline Stocks Climb on Week, Jet Fuel Drops
Midwest gasoline inventories rose last week, joined by surging crude oil and
distillate fuel stocks, while jet fuel balances fell, the Energy Information
Administration (EIA) reported Wednesday (7/1), citing data for the week ended
June 26.
Motor gasoline inventories in the PADD 2 region built by 200,000 bbl on the
week to 43.9 million bbl, according to the federal agency's report. On the
year, PADD 2 gasoline stocks were down by 3.5 million bbl from the 47.4 million
bbl level seen during the corresponding week last year.
Weekly imports of gasoline into the Midwest region rose by 1,000 bpd on the
week to average 14,000 bpd during the current reporting period. This increase
left regional gasoline imports higher than the year-ago level of 11,000 bpd
recorded during the corresponding week last year.
Distillate fuel oil inventories in the PADD 2 region rose by 600,000 bbl on
the week to reach a total of 27.8 million bbl. That build placed regional
distillate inventories at 3.72 million bbl higher than the 24.08 million bbl
logged during the corresponding week last year. Distillate imports into the
region averaged 21,000 bpd, up by 16,000 bpd on the week and rising by 12,000
bpd from the year-ago period.
Jet fuel stocks fell by 300,000 bbl from the prior week to 7.5 million bbl,
standing 700,000 bbl above the previous year's level. Inbound jet fuel
shipments to the Midwest remained at zero, representing an unchanged status on
both the week and the year under current reviews.
Crude oil inventories increased by 800,000 bbl on the week to 98.1 million
bbl, which is 4.9 million bbl lower than last year. Crude imports into the PADD
2 region increased by 123,000 bpd on the week to average 2,654,000 bpd,
according to latest data. However, this inbound crude oil volume remains
368,000 bpd lower than the 3,022,000 bpd reported by the agency during the
corresponding week last year.
Refiner use of crude in the Midwest stood at 4.258 million bpd for last
week, versus 4.261 million the week prior and 4.223 million a year ago. The
rate of utilization slipped to 99.8% versus the prior week's 100% and the
year-ago level of 99.1%.
Analysis: EIA Confirms Record Crude Production, Exports
U.S. crude oil production and exports set new record highs in April, monthly
Energy Information Administration data released Tuesday (6/30) showed, beating
previous weekly estimates.
The closure of the Strait of Hormuz at the start of March cut the world off
a fifth of global oil supply, leading to unprecedented demand for U.S. crude
oil and refined products. Consequently, crude oil exports in April jumped by
1.55 million bpd, or 38%, to 5.59 million bpd, dwarfing the previous monthly
record set in December 2023 by 971,000 bpd. Year over year, crude exports were
up 1.71 million bpd, or 44%.
EIA's weekly estimates had captured the trend, but likely slightly
underestimated the size of the increase. Weekly data showed crude exports
clocking in at 5.3 million bpd in the four weeks ending May 1, a month-on-month
plus of 1.33 million bpd.
U.S. crude production also reacted to the price jump caused by the largest
oil supply disruption in history. Field production soared by 216,000 bpd to a
record high 13.93 million bpd in April, marking a 468,000 bpd, or 3.5%,
year-on-year increase.
As with exports, weekly EIA data failed to fully reflect the rise in
production. Weekly estimates had pegged average crude oil production in the
four weeks ending May 1 at 13.59 million bpd.
The agency has a history of underestimating crude output in their weekly
figures, and has, in the past, adapted by adjusting higher production estimates
in the WPSR. Estimates have, however, considerably improved, leading to an
ever-shrinking adjustment factor. This factor has over the past months turned
negative, suggesting that the EIA might currently be underestimating exports
more than production.
These trends seemed to continue according to the most recent weekly data
published today (7/1). Crude exports have over the past four weeks averaged
4.46 million bpd, 905,000 bpd, or 25.5%, more than in the comparable period
last year. This unbroken export strength in combination with rising domestic
demand -- crude oil inputs averaged just shy of 17.2 million bpd in the week
ended June 26 -- continued to exert a strong pull on commercial crude
inventories, which fell to 408.4 million bbl, the lowest in nearly eight years.
EIA: PADD 1 Distillate Stocks Rebound From 1-Year Low
U.S. East Coast (PADD 1) distillate fuel oil inventories rebounded from a
one-year low during the week ended June 26, while gasoline, jet fuel and crude
oil inventories declined amid a sharp drop in refinery utilization, according
to the U.S. Energy Information Administration's Weekly Petroleum Status Report
released Wednesday.
Distillate inventories on the East Coast, the primary storage region for
heating oil and diesel, increased by 1.6 million bbl to 23 million bbl after
dropping the previous week to their lowest level since June 27, 2025.
Inventories were 1.5 million bbl above the 21.5 million bbl reported during the
same week last year. East Coast distillate imports declined by 24,000 bpd to
60,000 bpd from the previous week and were below the 99,000 bpd imported during
the comparable week of 2025.
Motor gasoline inventories in PADD 1 fell by 800,000 bbl to 57.2 million bbl
during the reference week and remained 4.5 million bbl below the 61.7 million
bbl recorded a year earlier. Gasoline imports into the region declined by
179,000 bpd to 387,000 bpd and were down from 628,000 bpd in the same week last
year.
Jet fuel inventories declined by 500,000 bbl to 11.1 million bbl, leaving
stocks 100,000 bbl below the 11.2 million bbl reported during the comparable
week in 2025. East Coast jet fuel imports increased to 13,000 bpd from 6,000
bpd the previous week but remained slightly below the 14,000 bpd imported a
year earlier.
Crude oil inventories on the East Coast declined by 600,000 bbl to 7.9
million bbl during the week profiled and were 1 million bbl below year-ago
levels. Crude imports into the region averaged 429,000 bpd, down from 540,000
bpd the previous week and below the 960,000 bpd reported during the same week
in 2025.
Refinery utilization on the East Coast fell to 68.3% of operable capacity
from 76.5% the previous week, while crude oil inputs declined by 77,000 bpd to
617,000 bpd, EIA data showed.
EIA: Ethanol Output Sets Seasonal Record, Up 3.8% on Yr
The Energy Information Administration reported on Wednesday (7/1) that
overall ethanol production in the United States averaged 1.117 million bpd in
the week ending June 26, up 27,000 bpd week-on-week and 41,000 bpd, or 3.8%
higher than in the same week last year.
Nationwide production was the seasonally highest on record, up 5.2% from the
five-year average. Four-week average output at 1.104 million bpd was 7,000 bpd
above the same four weeks last year.
Midwest ethanol production averaged 1.053 million bpd, up 16,000 bpd
week-on-week and 37,000 bpd, or 3.6% higher than in the same week last year.
Four-week average output at 1.045 million bpd was 7,000 bpd above the same four
weeks last year.
Ethanol blending activity in the U.S. averaged 921,000 bpd, down 2,000 bpd
week-on-week and 4,000 bpd, or 0.4% lower than in the same week last year.
Four-week average blending demand at 918,000 bpd was 5,000 bpd above the same
four weeks last year.
Blender inputs at the East Coast were down 6,000 bpd on the week while inputs
in the Midwest were down 2,000 bpd, up 5,000 bpd on the Gulf Coast and
unchanged on the West Coast.
Domestic ethanol inventories ended the week at 24.69 million bbl, up 105,000
bbl week-on-week and 573,000 bbl, or 2.4% higher than in the same week last
year.
East Coast PADD 1 inventories ended the week at 6.649 million bbl, down 53,000
bbl week-on-week and 927,000 bbl, or 12.2% lower than in the same week last
year.
Midwest PADD 2 inventories ended the week at 10.424 million bbl, up 166,000 bbl
week-on-week and 786,000 bbl, or 8.2% higher than in the same week last year.
Gulf Coast PADD 3 inventories ended the week at 4.956 million bbl, down 197,000
bbl week-on-week and 736,000 bbl, or 17.4% higher than in the same week last
year.
West Coast PADD 5 inventories ended the week at 2.325 million bbl, up 204,000
bbl week-on-week and 49,000 bbl, or 2.1% lower than in the same week last year.
EIA: PADD 5 Gasoline Stocks Rise for 6th Week
U.S. West Coast gasoline inventories increased for the sixth consecutive
week while distillate and jet fuel stocks also climbed in the week ended June
26, Energy Information Administration data showed Wednesday (7/1).
Motor gasoline inventories in the PADD 5 region increased for the sixth
consecutive week, climbing by 300,000 bbl to 29.2 million bbl during the week
ended June 26, the EIA's Weekly Petroleum Status Report showed. Year-on-year,
gasoline stocks in the region were 700,000 bbl lower. PADD 5 gasoline imports
increased by 97,000 bpd to 165,000 bpd last week but were 85,000 bpd lower than
the same week last year.
Distillate fuel oil inventories in the region climbed by 300,000 bbl to 11.6
million bbl during the week profiled and were 700,000 bbl higher than the
volume reported in the same period last year. Distillate imports into the
region declined by 19,000 bpd to 17,000 bpd and remained 7,000 bpd above
year-ago levels.
Jet fuel inventories increased by 900,000 bbl to 11.9 million bbl and were
400,000 bbl higher than a year earlier. Jet fuel imports into the region
totaled 47,000 bpd, up 3,000 bpd from the prior week but 13,000 bpd below the
same week last year.
Crude oil inventories in PADD 5 declined by 1.3 million bbl to 42.3 million bbl
during the week ended June 26 and were 6.4 million bbl lower than the same week
last year. Crude oil imports increased by 101,000 bpd to 1.008 million bpd on
the week and were 64,000 bpd higher than the previous year.
Refinery utilization in the West Coast region increased to 94.2% from 93.7% the
previous week, according to EIA data.
EIA: Crude Stocks Lowest Since 2018; Products Mixed
U.S. commercial crude oil inventories continued their downward trend,
declining for a 10th consecutive week, according to Energy Information
Administration data for the week ended June 26 released Wednesday (7/1).
Gasoline inventories also fell, while distillate fuel and jet fuel inventories
increased.
Commercial crude oil inventories fell by 3.8 million bbl to 408.4 million
bbl during the week profiled, the lowest commercial crude oil inventory level
since the week ended September 28, 2018, when stocks stood at 403.9 million
bbl. Crude oil inventories were down 10.6 million bbl, or 2.5%, from the same
week last year.
Crude oil imports averaged 5.279 million bpd in the profiled week, down by
291,000 bpd from the previous week. Over the last four weeks, crude imports
averaged 6.103 million bpd, up 0.2% from the same period last year. Crude oil
exports averaged 4.008 million bpd last week, down from 4.669 million bpd the
week prior but below the 4.270 million bpd reported a year earlier.
Distillate fuel inventories rose by 2.5 million bbl to 108.6 million bbl
during the reference week and were up 5 million bbl, or 4.8%, from the same
week last year. Distillate imports averaged 108,000 bpd compared with 135,000
bpd the previous week and 118,000 bpd a year earlier. Distillate exports
averaged 1.327 million bpd versus 1.394 million bpd the previous week and 1.353
million bpd during the comparable week last year.
Total motor gasoline inventories fell by 2.3 million bbl to 214 million bbl
during the week profiled and were down 18.2 million bbl, or 7.8%, from the same
week last year. Gasoline imports averaged 639,000 bpd compared with 647,000 bpd
the previous week and 906,000 bpd a year earlier. Gasoline exports averaged
1.016 million bpd versus 762,000 bpd the previous week and 783,000 bpd during
the comparable week last year.
Jet fuel inventories rose by 1.7 million bbl to 48 million bbl last week and
were up 2.9 million bbl, or 6.3%, from year-ago levels. Jet fuel imports
averaged 61,000 bpd compared with 52,000 bpd the previous week and 74,000 bpd a
year earlier. Jet fuel exports averaged 275,000 bpd versus 378,000 bpd the
previous week and 168,000 bpd during the comparable week last year.
Refinery utilization increased to 96.6% of operable capacity last week from
96.1% in the prior week. Crude oil inputs into refineries averaged 17.196
million bpd, up by 85,000 bpd from the previous week's 17.111 million bpd.
Total products supplied over the last four weeks averaged 20.638 million
bpd, up 1.7% from the same period last year. Gasoline demand averaged 8.962
million bpd, down 2.6%.
EIA: Propane/Propylene Stocks Expand, Rise 20.7% on Year
The Energy Information Administration reported on Wednesday (7/1) total
domestic propane/propylene stocks of 91.306 million bbl in the week ending June
26, up 1.259 million bbl week-on-week and 15.655 million bbl, or 20.7% higher
than in the same week last year.
Data show propane/propylene exports last week averaged 1.907 million bpd, down
119,000 bpd week-on-week and 39,000 bpd, or 2.1%, higher than in the same week
last year.
Implied demand for propane/propylene in the United States averaged 896,000 bpd,
up 310,000 bpd week-on-week and 328,000 bpd, or 57.7% higher than in the same
week last year.
EIA reports domestic propane/propylene production averaged 2.904 million bpd,
up 11,000 bpd week-on-week and 107,000 bpd, or 3.8% higher than in the same
week last year.
East Coast PADD 1 inventories ended the week at 7.25 million bbl, up 403,000
bbl week-on-week and 753,000 bbl, or 11.6% higher than in the same week last
year.
Midwest PADD 2 inventories ended the week at 21.419 million bbl, up 720,000 bbl
week-on-week and 2.997 million bbl, or 16.3% higher than in the same week last
year.
Gulf Coast PADD 3 inventories ended the week at 58.833 million bbl, up 173,000
bbl week-on-week and 11.904 million bbl, or 25.4% higher than in the same week
last year.
Combined inventories in the Rockies and the West Coast, PADD 4 and 5, ended the
week at 3.805 million bbl, down 36,000 bbl week-on-week and 2,000 bbl, or 0.1%
higher than in the same week last year.
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