MARKETWIRE ALERTS
Barani Krishnan
DTN Refined Fuels Market Reporter
MARKETWIRE ALERTS
MarketWire Afternoon News July 10th:
Updated at 5:00 PM ET
HEADLINES:
-- USWC Weekly: ULSD Spot Prices Climb 9% Amid Tight Supplies
-- Midwest Weekly: Jet Fuel Leads Price Leap Across Board
-- USGC Weekly: ULSD Spot Prices Rise 9.34% on Week
-- NYH Weekly: Fuel Spot Prices Climb on Geopolitical Fears
-- CFTC: WTI Bullish Bets Drop Reacting to Mideast Moves
-- Baker Hughes: Weekly North America Rigs Dip By 10 to 760
-- Enterprise Mont Belvieu Reports PDH 2 Unit Shutdown
-- IEA: World Oil Demand to Dip 1M bpd in 2026, Most in 6 Yrs
NEWS:
USWC Weekly: ULSD Spot Prices Climb 9% Amid Tight Supplies
U.S. West Coast ultra-low sulfur diesel spot prices closed with steep
increases the week ending July 10, followed by gasoline, amid tight supplies.
However, jet fuel spot prices showed weekly increases despite a build of stocks
last week.
Los Angeles ULSD spot values strengthened by 29.86cts, or 9.18% to $3.5503
gallon. This was 43.48% higher than the same week last year. Diesel prices in
San Francisco rose almost 29cts to $3.4748 gallon, up 33.46% than the previous
year.
Meanwhile, Los Angeles CARBOB spot prices rose 5.04cts to $3.2693 gallon in
the week ending July 10, an increase of 46.47% on a yearly basis.
Jet fuel spot prices averaged $3.2938 in Los Angeles and San Francisco, an
increase of 7.62% and 6.88%, respectively, week-over-week. These were 35.59%
higher than the price reported in the same week of last year for both markets.
U.S. West Coast gasoline and distillate inventories declined last week while
jet fuel stocks increased in the week ended July 4, Energy Information
Administration data showed Wednesday (7/8).
Motor gasoline inventories in the PADD 5 region slipped by 300,000 bbl to
28.9 million bbl during the profiled week, ending a four-week streak of
inventory increases, the EIA's Weekly Petroleum Status Report showed.
Year-on-year, gasoline stocks were 1.5 million bbl lower. PADD 5 gasoline
imports fell by 60,000 bpd to 105,000 bpd last week and were 7,000 bpd lower
compared with the same week last year.
Distillate fuel oil inventories in the region declined by 500,000 bbl to
11.1 million bbl during the week profiled and were 200,000 bbl higher than the
volume reported in the same period last year, EIA data showed. PADD 5
distillate imports fell by 13,000 bpd to 4,000 bpd during the week.
In contrast, jet fuel stocks on the West Coast rose by 400,000 bbl to 12.3
million bbl and were 800,000 bbl higher than a year earlier. Jet fuel imports
increased by 28,000 bpd to 75,000 bpd.
On refining news, PBF Energy reported an unplanned flaring event at its
166,000 bpd Torrance, California refinery on Wednesday (7/8). The refinery has
experienced multiple flaring events this year tied to both planned maintenance
activity and operational disruptions.
Midwest Weekly: Jet Fuel Leads Price Leap Across Board
Midwest spot fuel prices surged across the board during the week ended July
10, driven higher by a rally in aviation fuel which reached its strongest
levels since November.
Group 3 jet fuel led the PADD 2 region's upward momentum by rocketing
42.75cts to a weekly average of $3.3346 gallon, according to pricing data
monitored by DTN. That substantial weekly increase pushed the product up
$1.1062 from its corresponding year-ago average, representing a 47% jump over
the previous year.
Group 3 jet fuel was talked at a discount of just 2.5cts gallon to August
NYMEX ultra-low sulfur diesel (ULSD) on July 9. Its basis reached the strongest
level since Nov. 17, 2025, when the differential was at a 2.0cts discount.
Group 3 ULSD posted the second largest regional advance, climbing 32.66cts
to finish at a weekly average of $3.1368 gallon. On the year, it was 83.37cts
higher.
Chicago ULSD recorded another significant gain by climbing 20.46cts on the
week to finish at a weekly average of $3.0158 gallon.
Chicago jet fuel also posted solid gains by rising 16.86cts to a weekly
average of $2.8998 gallon, which is 55.12cts above the year-ago level.
The rise in diesel and jet fuel values came as NYMEX ULSD for August
delivery jumped nearly 12% on the week. The market was boosted by supply
concerns amid renewed U.S.-Iran clashes in the Middle East.
The gains came despite distillate fuel oil inventories in the PADD 2 region
rising by 500,000 bbl during the week ended July 3 to 28.3 million bbl. That
build placed regional distillate inventories at 3.7 million bbl higher than the
24.6 million bbl logged during the corresponding week last year.
On the gasoline front, Chicago CBOB regular edged up 11.59cts to a weekly
average of $2.8613 gallon, leaving it 70.99cts higher than last year.
PADD 2 gasoline inventories built by 400,000 bbl on the week to 44.3 million
bbl, according to the EIA. On the year, Midwest gasoline stocks were down by
1.8 million bbl from the 46.1 million bbl level seen during the corresponding
week last year.
USGC Weekly: ULSD Spot Prices Rise 9.34% on Week
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.
NYH Weekly: Fuel Spot Prices Climb on Geopolitical Fears
New York Harbor (NYH) refined products spots prices rose from the previous
week and from a year earlier in the week ended July 10, tracking increase in
futures driven as renewed tensions in the Middle East. The advance was also
supported by declining PADD 1 distillate and gasoline inventories, while
refinery utilization recovered from the prior week.
Ultra-low sulfur diesel (ULSD) posted the strongest weekly advance, rising
28.24cts, or 8.78%, week over week to average $3.4984 gallon. The weekly
average was 46.43% above the corresponding period of the previous year.
CBOB regular followed, increasing 20.88cts, or 7.20%, to average $3.1097
gallon on a weekly basis. The gasoline grade remained 45.64% above the same
period of the previous year.
Jet fuel prices also strengthened, rising 16.64cts, or 5.85%, to average
$3.0091 gallon. The weekly average was 38.55% above the corresponding week of
the previous year, according to DTN data.
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 Friday.
PADD 1 gasoline inventories fell by 1.6 million bbl to 55.6 million bbl
during the week ended July 3, leaving stocks 7.2 million bbl below the same
week of the previous year. Gasoline imports also declined by 95,000 bpd to
292,000 bpd, according to Energy Information Administration data released on
Wednesday (7/8).
Distillate fuel oil inventories dropped by 1.7 million bbl to 21.3 million
bbl, leaving stocks 2.0 million bbl below the same week of the previous year.
Meanwhile, East Coast distillate imports increased by 7,000 bpd to 67,000 bpd.
Jet fuel inventories increased by 200,000 bbl to 11.3 million bbl, standing
700,000 bbl above the comparable week of the previous year.
CFTC: WTI Bullish Bets Drop Reacting to Mideast Moves
SECAUCUS, NJ (DTN) - Money managers slashed their bullish bets in NYMEX West
Texas Intermediate crude during the week ended July 7 as market participants
liquidated positions amid volatile price action related to the situation in the
Middle East.
WTI futures traded mostly flat near $68 bbl early in the reference period
before surging over 2% to settle above $70 on July 7 as the rapid recovery in
Persian Gulf oil shipments contrasted with the return in hostilities to the
region.
Noncommercial long positions in WTI held by money managers fell by 22,925
contracts to 317,773 during the reference week, according to data from the
Commodity Futures Trading Commission (CFTC) released Friday (7/10).
Noncommercial short positions increased by 11,857 contracts to 242,024
during the same week, the CFTC's weekly Commitment of Traders data showed.
The difference between the noncommercial longs and shorts caused the net
long position in WTI to decline by 34,782 contracts to 75,749.
Open interest, meanwhile, fell by 8,682 contracts to 1,905,761.
Baker Hughes: Weekly North America Rigs Dip By 10 to 760
North American energy drilling activity declined this week, Baker Hughes
weekly rotary rigs report released Friday (7/10) showed, with the regional
count of active rigs dropping by 10 to 760, from a prior 770.
Year on year, rigs for Canada and the United States combined were up 61 from
the 699 actively deployed in the exact same week of 2025.
The present week's lower numbers showed contrasting domestic changes, as the
U.S. tally edged up by one while Canadian activity dropped significantly by 11
rigs.
In the U.S. alone, oil-directed rigs were flat at 445, while gas-directed
drilling numbers also held steady at 126. Miscellaneous rigs in the domestic
market gained by one to stand at a total of 10.
By trajectory, horizontal U.S. rigs decreased by three to 517, vertical
units rose by one to 13, and directional rigs were flat at 48.
Enterprise Mont Belvieu Reports PDH 2 Unit Shutdown
Enterprise reported a 24-hour flaring event at the PDH 2 unit of its 1.2
million bpd Mont Belvieu Complex in Texas, according to a filing with the Texas
Commission on Environmental Quality.
The event was reported Thursday (7/9). It began Wednesday (7/8) at 9:30 p.m.
and was expected to continue through Thursday (7/9) at 9:30 p.m. CT, the filing
said.
According to the filing, a controller fault caused Reactor Effluent
Compressor 1 to shut down, resulting in a shutdown of the PDH 2 unit and
venting of process streams to the flare for control.
Estimated emissions included approximately 2,500 pounds of carbon monoxide,
2,000 pounds of propane, 1,000 pounds each of nitrogen oxides and propylene,
and smaller amounts of C5+ hydrocarbons, ethylene and sulfur dioxide.
The company said it was following engineering procedures while operating the
PDH 2 flare to ensure vented hydrocarbons were properly combusted. Operations
and maintenance personnel were working to identify the controller fault and
restart the equipment.
The Mont Belvieu Complex is among the largest natural gas liquids
fractionation hubs in North America and serves as a major center for NGL
processing, storage and distribution.
Enterprise did not immediately respond to DTN's request for additional
details.
IEA: World Oil Demand to Dip 1M bpd in 2026, Most in 6 Yrs
Global oil demand is projected to drop by 1 million bpd year-on-year in
2026, marking the first annual decline since 2020, the International Energy
Agency (IEA) reported Friday (7/10).
Global supply rebounded by a sharp 4.1 million bpd to 98.8 million bpd in
June following a mid-month ceasefire agreement between the U.S. and Iran, the
IEA said in its monthly report. However, overall production remained 9.4
million bpd below pre-war levels after previous hostilities disrupted nearly 14
million bpd of flows.
The IEA warned that the fragile supply recovery could quickly reverse if
shipping on the Strait of o Hormuz faces more disruptions.
"Renewed exchanges of fire in the Gulf this week highlight the risks of not
reaching a lasting peace agreement, which is a must for the normalisation in
oil markets," the IEA noted. Both the U.S. and Iran announced an end to the
ceasefire this week as clashes resumed.
Annual demand contractions are set to ease from 4.8 million bpd in the
second quarter to 1.7 million bpd in the third quarter. The agency expects a
demand expansion of 1.2 million bpd in the fourth quarter.
Global refinery runs rose by 1.5 million bpd in June, though volumes
remained down 6 million bpd year-on-year. Refinery activity is projected to
decline by 2.4 million bpd for the full year of 2026.
Global observed oil inventories grew by 21 million bbl in June, marking the
first monthly increase since the conflict began. Oil on water expanded by 117
million bbl, offsetting an onshore inventory draw of 96 million bbl.
Brent crude fell from a four-year high above $126 bbl in April to beneath
$72 in June, before rebounding above $80 this week. On Friday, it hovered at
around $72.
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