USGC Weekly: ULSD Spot Prices Rise 9.34% on Week


   
Miguel E. Andujar
DTN Refined Fuels Market Reporter

   DAVENPORT, FL (DTN) -- U.S. Gulf Coast (USGC) fuel spot prices increased 
during the week ended July 10, with ultra-low sulfur diesel (ULSD) showing the 
steepest increase, as crude oil stocks remained near five-month lows. All three 
major products remained well above their previous year's levels.

   USGC ultra-low sulfur diesel (ULSD) posted the strongest increase during the 
reference week, rising 29.54cts, or 9.34%, week-over-week to average $3.4591 
gallon. This was 50.38% higher than the value reported during the same period 
last year.

   Jet fuel recorded the second-largest increase, climbing 23.09cts, or 8.48%, 
to average $2.9541 gallon for the week. The weekly average was 41.29% above the 
corresponding period of the previous year.

   CBOB regular increased 4.21cts, or 1.51%, to average $2.8340 gallon on a 
weekly basis and was 40.26% higher than during the same period last year.

   The weekly advances came as front-month WTI crude futures climbed about 5.5% 
during the week, rising from an opening level near $64.90 bbl to settle above 
$68.40 bbl on Friday, supported by renewed geopolitical concerns after the 
Trump Administration on Thursday (7/8) said that the ceasefire with Iran was 
over.

   USGC fuel spot prices rose despite mixed inventory data reported by the U.S. 
Energy Information Administration this week. PADD 3 gasoline inventories 
declined by 200,000 bbl to 76.4 million bbl during the week ended July 3, the 
lowest level since the week ended Oct. 11, 2024, when stocks stood at 76.2 
million bbl. Inventories remained 9.4 million bbl below the same week of the 
previous year, while gasoline imports declined to 59,000 bpd from 73,000 bpd 
the prior week.

   Distillate fuel oil inventories increased by 1.2 million bbl to 43.9 million 
bbl, though stocks remained near historically tight seasonal levels. 
Inventories were 900,000 bbl above the same week of the previous year. 
Meanwhile, jet fuel inventories edged down 200,000 bbl to 16.6 million bbl 
while remaining 1.6 million bbl above the comparable week of the previous year.

   PADD 3 crude oil inventories declined by 300,000 bbl to 237.2 million bbl, 
the lowest level since the week ended Feb. 27, 2026, and 3.5 million bbl below 
the same week of the previous year. Crude imports increased to 841,000 bpd from 
807,000 bpd the prior week.

   Operationally, refinery activity remained elevated despite easing from the 
previous week, with refinery utilization slipping to 96.5% from 98.1% while 
crude oil inputs declined to 9.401 million bpd. During the week, Phillips 66 
reported a weather-related emissions event at its 149,000 bpd Borger refinery 
in Texas following process unit upsets caused by severe weather. No other 
significant refinery outages or supply disruptions were reported across the 
region.

    




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