U.S. Rack ULSD Down 9.60cts; Gasoline Slips 4.35cts


   
Miguel E. Andujar
DTN Refined Fuels Market Reporter

   DAVENPORT, FL (DTN) -- Wholesale rack prices for ultra-low sulfur diesel 
(ULSD) and gasoline moved lower Wednesday (4/1), extending Tuesday's softness 
in diesel while reversing prior strength in gasoline, as futures markets 
declined on shifting geopolitical signals tied to the Iran war.

   Nationwide ULSD rack prices averaged $4.1364 gallon, down 9.60cts from 
Tuesday's $4.2324 gallon, according to DTN data. Conventional unleaded gasoline 
rack prices averaged $3.2706 gallon, down 4.35cts from $3.3141 gallon. The move 
follows a mixed session Tuesday, when ULSD declined 6.82cts while gasoline rose 
9.10cts.

   Futures prices moved lower Wednesday morning. Front-month May NYMEX ULSD 
futures fell 4.01cts to $4.0723 gallon, while May RBOB gasoline futures 
declined 9.18cts to $3.1125 gallon. WTI crude for May delivery dropped $1.43 to 
$99.95 bbl.

   Pressure in futures came after U.S. President Donald Trump indicated 
military operations against Iran could wind down within two to three weeks, 
suggesting a potential easing in conflict intensity even without a formal 
agreement. At the same time, the Strait of Hormuz remained effectively shut, 
continuing to restrict a significant share of global oil and gas flows. The 
combination has kept supply risk elevated while introducing uncertainty around 
the duration of disruptions.

   ULSD racks moved lower across most regions Wednesday, with the largest 
declines in PADD 1 and PADD 3. East Coast ULSD fell 14.99cts to $4.3096 gallon, 
while Gulf Coast prices declined 12.64cts to $4.2251 gallon. West Coast values 
dropped 8.59cts to $5.4423 gallon, maintaining the strongest regional premium. 
PADD 4 decreased 5.25cts to $3.9262 gallon, while Midwest ULSD was the only 
region to move higher, up 2.33cts to $3.6811 gallon.

   Relative to the national ULSD rack average of $4.1364 gallon, PADD 5 held 
the widest premium at $1.3059 above the U.S. benchmark, followed by PADD 1 at 
17.32cts above and PADD 3 at 8.87cts above. PADD 4 traded below the national 
average, while PADD 2 remained the deepest discount at 45.53cts below the 
benchmark.

   On conventional unleaded gasoline racks, all regions moved lower Wednesday. 
West Coast gasoline recorded the largest decline, falling 6.47cts to $3.9514 
gallon, while Rocky Mountain prices dropped 5.59cts to $2.9889 gallon. East 
Coast values declined 3.51cts to $3.1044 gallon, Gulf Coast prices fell 2.65cts 
to $3.0812 gallon, and Midwest gasoline decreased 3.24cts to $2.7604 gallon.

   Compared with the national gasoline average of $3.2706 gallon, PADD 5 
remained the only region trading at a premium, at 68.08cts above the benchmark. 
All other regions held discounts, led by PADD 2 at 51.02cts below the national 
average, followed by PADD 4 at 28.17cts, PADD 3 at 18.94cts, and PADD 1 at 
16.62cts.

   Premium gasoline rack prices declined across all regions, broadly in line 
with conventional gasoline. West Coast premiums remained elevated at $4.3443 
gallon despite a 6.05cts decline, while Midwest prices posted the largest drop, 
down 6.64cts to $3.2341 gallon.

   The synchronized decline in both futures and rack prices suggests markets 
are reacting to shifting expectations around the duration of the conflict, even 
as underlying supply risks remain unresolved. Physical markets appear to be 
adjusting alongside futures after recent volatility, with pricing continuing to 
respond quickly to changes in geopolitical direction.




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