U.S. Rack ULSD Up 17.5cts; Gasoline Rises 12.7cts


   
   DAVENPORT, FL (DTN) -- Wholesale rack prices for ultra-low sulfur diesel 
(ULSD) and gasoline moved up a third consecutive day Thursday (4/23) as 
physical markets climbed while futures were mixed in choppy trading amid 
uncertainties in the Middle East conflict.

   Nationwide ULSD rack prices averaged $4.0554 gallon, up 17.5cts from 
Wednesday's $3.8804 gallon, according to DTN data. Conventional unleaded 
gasoline rack prices averaged $3.4569 gallon, up 12.67cts.

   By 10:00 a.m. ET Thursday, front-month June ULSD on NYMEX declined 2.51cts 
to $3.9128 gallon, while June RBOB gasoline futures rose 0.0179cts to $3.3758 
gallon. WTI crude for June delivery rose $1.24 to $94.20 bbl.

   The futures market was mixed as participants sought clarity over the future 
of U.S.-Iran truce talks that could ease the largest oil supply disruption in 
history as the Strait of Hormuz -- the main waterway for Middle East oil 
shipments -- remained accessible to energy product carriers while the Iran war 
approached its eight week.

   Additional support for rack prices came from weekly inventory data released 
Wednesday by the U.S. Energy Information Administration, which reported that 
gasoline stocks fell 4.6 million bbl and distillates 3.4 million bbl.

   ULSD racks moved higher across all regions Thursday, with the largest 
increases in PADD 1 and PADD 3. East Coast ULSD rose 20.11cts to $4.0760 
gallon, while Gulf Coast prices increased 19.57cts to $4.0272 gallon. Midwest 
values climbed 10.54cts to $3.8242 gallon, while West Coast ULSD rose 16.85cts 
to $4.8944 gallon, maintaining the strongest regional premium. Rocky Mountain 
prices posted the smallest increase, up 9.78cts to $4.2297 gallon.

   Relative to the national ULSD rack average of $4.0554 gallon, PADD 5 held 
the widest premium at 83.90cts above the U.S. benchmark, followed by PADD 4 at 
17.43cts above. PADD 1 traded slightly above the national average, while PADD 2 
and PADD 3 remained at discounts of 23.12cts and 2.82cts, respectively.

   On conventional unleaded gasoline racks, all regions moved higher Thursday. 
East Coast gasoline rose 13.78cts to $3.1741 gallon, while Midwest prices 
increased 12.14cts to $2.9326 gallon. Gulf Coast values climbed 12.34cts to 
$3.0811 gallon, while Rocky Mountain gasoline rose 8.97cts to $3.2960 gallon. 
West Coast prices increased 11.77cts to $4.1901 gallon, maintaining the only 
premium position.

   Compared with the national gasoline average of $3.4569 gallon, PADD 5 
remained the only region trading at a premium, at 73.32cts above the benchmark. 
All other regions held discounts, led by PADD 2 at 52.43cts below the national 
average, followed by PADD 3 at 37.58cts and PADD 1 at 28.28cts. PADD 4 traded 
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 
$4.5819 gallon, while other regions posted steady increases.

   The continued climb in rack prices reflects a physical market still catching 
up to earlier strength, even as futures pause after the recent rally. Supply 
concerns tied to constrained Middle East flows, along with stronger than 
expected inventory draws, continue to keep the tone firm across refined 
products.

   Structure has also strengthened following the futures rollover, with RBOB 
backwardation widening to above 12cts and ULSD spreads expanded sharply. The 
front month contract, meanwhile, traded more than $2 above deferred contracts. 
That steep premium for prompt barrels highlights how tight near-term 
availability remains, with buyers still prioritizing immediate supply over 
forward positions.




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