U.S. Rack ULSD Down 27.4cts; Gasoline Pulls Back


   
Miguel E. Andujar
DTN Refined Fuels Market Reporter

   DAVENPORT, FL (DTN) -- Wholesale rack prices for ultra-low sulfur diesel and 
gasoline moved lower Thursday (3/26), reversing part of Wednesday's rebound, 
while futures markets turned higher again as geopolitical risks tied to the 
Iran war and fresh supply disruptions resurfaced.

   Nationwide ULSD rack prices averaged $3.9014 gallon, down 27.41cts from 
Wednesday's $4.1755 gallon, according to DTN data. Conventional unleaded 
gasoline rack prices averaged $3.0470 gallon, down 13.68cts from $3.1838 
gallon. Premium gasoline was mixed, with most regions declining while the 
Midwest posted a slight increase.

   ULSD racks declined across most regions Thursday, with the largest drops in 
PADD 3 and PADD 1. Gulf Coast ULSD fell 31.00cts to $3.9311 gallon, while East 
Coast prices dropped 27.44cts to $4.0820 gallon. Midwest values declined 
21.63cts to $3.5241 gallon, maintaining the deepest discount nationally. PADD 4 
fell 15.95cts to $4.1321 gallon. In contrast, West Coast ULSD edged higher by 
3.86cts to $5.1907 gallon, extending its premium position.

   Relative to the national ULSD rack average of $3.9014 gallon, PADD 5 held 
the widest premium at $1.2893 above the U.S. benchmark, followed by PADD 4 at 
23.07cts above and PADD 1 at 18.06cts above. PADD 3 traded just slightly above 
the national average, while PADD 2 remained the deepest discount at 37.73cts 
below the benchmark.

   On conventional unleaded gasoline racks, all regions moved lower Thursday. 
The Midwest posted the largest decline, falling 17.47cts to $2.5177 gallon. 
Gulf Coast prices dropped 11.75cts to $2.7914 gallon, while East Coast values 
declined 11.23cts to $2.7936 gallon. West Coast gasoline fell 11.93cts to 
$3.7711 gallon, maintaining the strongest premium, while PADD 4 recorded the 
smallest move, down 9.52cts to $3.1566 gallon.

   Compared with the national gasoline average of $3.0470 gallon, PADD 5 
remained the only region trading at a premium, at 72.41cts above the benchmark. 
All other regions held discounts, led by PADD 2 at 52.93cts below the national 
average, followed by PADD 3 at 25.56cts and PADD 1 at 25.34cts. PADD 4 remained 
modestly above the benchmark.

   Premium gasoline rack prices were mixed. Most regions moved lower, though 
PADD 2 increased 8.43cts to $3.1581 gallon. West Coast premiums remained 
elevated at $4.1519 gallon, continuing to reflect tighter regional supply.

   Futures prices moved higher Thursday morning, diverging again from physical 
rack markets. Front-month May NYMEX ULSD futures rose 22.08cts to $4.0313 
gallon, while May RBOB gasoline futures increased 7.75cts to $3.0377 gallon. 
WTI crude for May delivery climbed $3.80 to $94.10 bbl.

   The move higher in futures came as geopolitical risks remained unresolved. 
Iran signaled skepticism over potential peace talks with the United States, 
casting doubt on a near-term ceasefire, while continued missile exchanges in 
the region sustained uncertainty. At the same time, Russia was forced to halt 
oil exports from several ports following Ukrainian drone attacks, adding a new 
layer of supply disruption.

   Those developments continue to pull futures higher on supply risk, while 
rack prices are adjusting more to short-term physical conditions after the 
sharp swings earlier in the week. The result has been a back-and-forth pattern, 
with futures reacting quickly to headlines and rack markets recalibrating as 
supply flows and buying activity shift day to day.




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