USGC Weekly: ULSD Spot Price Climbs 10%, Doubles YoY


   
Miguel E. Andujar
DTN Refined Fuels Market Reporter

   DAVENPORT, FL (DTN) -- U.S. Gulf Coast (USGC) refined product spot prices 
strengthened during the week ended September 4, with ultra-low sulfur diesel 
(ULSD) and jet fuel rising more than 10% as global supply disruptions continued 
to pull U.S. barrels into export markets. ULSD prices more than doubled 
compared to the same week of last year, according to DTN data.

   Most of the fuel price increases were driven from the roll into a new 
futures contract and a higher RVP. The rally was also supported by robust 
export demand with international buyers seeking alternative supplies amid 
restricted flows through the Strait of Hormuz and reduced availability of 
Russian diesel.

   ULSD at the Houston origin of the Colonial Pipeline averaged $4.6370 gallon, 
rising 44.84cts, or 10.71%, from the previous week. The weekly average was 
$2.3307, or 104.80%, above the $2.2240 gallon recorded during the comparable 
week in 2025. The increase occurred despite the Energy Information 
Administration on Wednesday (9/2) reported distillate stockpiles rose by 3.1 
million bbl to 42.7 million bbl, recovering from a more than three-month low 
recorded the previous week. Yet, inventories remained 1.3 million bbl below the 
44 million bbl reported during the same week last year.

   Meanwhile, jet fuel averaged $4.1182 gallon, up 41.77cts, or 11.29%, from 
the previous week and $1.9777, or 95.68%, above the comparable 2025 level. The 
hike was triggered by limited supplies. The EIA said jet fuel stocks fell by 
500,000 bbl to 14.3 million bbl during the week ended August 28, hitting a 
three-month low. Inventories remained 1.4 million bbl above the 12.9 million 
bbl reported during the same week of the previous year.

   On gasoline, Gulf Coast CBOB regular averaged $3.1474 gallon, rising 
14.32cts, or 4.77%, from the previous week and $1.3066, or 67.38%, above the 
comparable week in 2025.

   Motor gasoline inventories in PADD 3 fell by 1 million bbl to 76.2 million 
bbl during the week ended August 28, extending the previous week's 2.3 million 
bbl decline. Inventories remained 5.1 million bbl below the 81.3 million bbl 
reported during the same week of the previous year.

   Refinery utilization in the region st increased to 97.7% from 97% the 
previous week, while crude oil inputs rose to 9.6 million bpd from 9.5 million 
bpd, leaving little room for unplanned downtime as Tropical Storm Edouard 
affected Southeast Texas during the week.

   Storm-related disruptions were reported at Motiva's Port Arthur refinery and 
Valero's Port Arthur refineries on September 1. Motiva said severe weather 
affected multiple process units, while Valero reported flaring and process 
upsets following a temporary third-party power outage linked to the storm. No 
prolonged refinery outages were reported in the region.




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