Diesel Racks Break Below $5 as Selloff Deepens


   
Miguel E. Andujar
DTN Refined Fuels Market Reporter

   DAVENPORT, FL (DTN) -- U.S. wholesale ultra-low sulfur diesel (ULSD) rack 
prices fell across all five PADDs for a second consecutive day on Friday (9/25) 
pushing the national average below $5 gallon, while conventional gasoline 
prices also edged lower.

   Nationwide ULSD rack prices averaged $4.9863 gallon, down 10.17cts from the 
previous trading session's $5.0881 gallon, according to DTN data.

   Conventional unleaded gasoline rack prices averaged $3.5990 gallon, down 
1.24cts from Thursday's $3.6113 gallon.

   The continued pullback came as oil markets weighed signs of possible 
diplomatic progress in the U.S.-Iran conflict. U.S. and Iranian negotiators 
have discussed a phased path that could include reopening the Strait of Hormuz, 
easing some of the supply concerns that have supported crude and 
refined-product prices.

   The front-month NYMEX WTI futures contract traded near $92.51 bbl Friday 
morning, down $2.08 on the day. October-delivery New York Harbor ULSD futures 
fell 3.03cts to around $4.70 gallon, while RBOB gasoline dropped 11.02cts to 
around $3.45 gallon.

   Refining margins also continued to retreat from recent highs. The diesel 
crack traded near $104.77 bbl, down sharply from Wednesday's weekly high of 
$112.97 bbl, while the gasoline crack fell $2.14 to around $52.96 bbl.

   ULSD racks declined across all five PADDs. West Coast values posted the 
largest drop, falling 19.32cts to $5.4062 gallon, followed by Midwest prices, 
which declined 12.02cts to $4.9867 gallon. Gulf Coast ULSD fell 11.36cts to 
$4.8411 gallon, Rocky Mountain values dropped 8.32cts to $5.3095 gallon and 
East Coast prices declined 3.38cts to $4.8250 gallon.

   PADD 5 maintained the widest ULSD premium to the national average at 
41.99cts, while PADD 1 held the largest discount at 16.13cts.

   Gasoline racks were mixed regionally. Gulf Coast values posted the largest 
decline, falling 2.51cts to $3.4408 gallon, followed by East Coast prices, 
which dropped 2.28cts to $3.4216 gallon. Midwest gasoline fell 2.15cts to 
$3.3357 gallon, while Rocky Mountain values edged up 0.43ct to $4.0879 gallon 
and West Coast prices rose 3.52cts to $4.4284 gallon.

   PADD 5 maintained the largest gasoline premium to the national average at 
82.94cts, while PADD 2 held the widest discount at 26.33cts.

   
 




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