MARKETWIRE ALERTS


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   MARKETWIRE ALERTS 

   MarketWire Afternoon News July 13th:

   Updated at 5:00 PM ET 

    

   HEADLINES:

    

   -- USGC, NYH Jet Fuel Jump After Major Low  

   -- Los Angeles Jet Fuel Basis Falls 11cts Amid Ample Supply

   -- Phillips 66 Sweeny Refinery Reports Power Upset

   -- OPEC Cuts Oil Demand 3rd Month in Row Amid Gulf Tensions

   -- Keystone Operator to Pay Nearly $70M for Kansas Oil Spill

    

   NEWS:

    

   USGC, NYH Jet Fuel Jump After Major Low

   U.S. Gulf Coast (USGC) jet fuel basis strengthened Monday (7/13) from a 
15-month low and New York Harbor (NYH) jet fuel rose too as ultra-low sulfur 
diesel (ULSD) futures rallied in NYMEX trading.

   USGC jet fuel basis was heard traded at a 47cts discount to August NYMEX 
ULSD futures, strengthening 6.50cts from Friday's assessment, according to DTN 
Energy data.

   NYH jet fuel basis was assessed at a 46cts discount to August NYMEX ULSD 
futures, strengthening 4cts from Friday, according to DTN Energy data.

   The rebound follows a July 8 selloff that took USGC jet fuel to its widest 
discount in 15 months at 61.75cts, and the NYH jet fuel basis to its weakest 
since March 28 at 55.50cts, DTN Energy data showed.

   Front-month ULSD futures climbed more than 7.5% Monday as renewed 
geopolitical tensions in the Middle East lifted crude oil and refined products 
after the U.S. announced it would reimpose a full blockade on Iranian maritime 
trade.

   Despite the recent recovery, both USGC and NYH jet fuel basis remain well 
below levels seen through much of June, indicating physical jet fuel values 
have yet to fully recover from last week's sharp decline.

    

   Los Angeles Jet Fuel Basis Falls 11cts Amid Ample Supply

   Los Angeles jet fuel basis weakened Monday (7/13) as ultra-low sulfur diesel 
(ULSD) futures contract surged more than 8% on the day amid renewed 
geopolitical concerns over hostilities in the Middle East, outweighing the 
impact of a weekly inventory build.  

   Los Angeles jet fuel traded at a 38cts discount to August NYMEX ULSD 
futures, widening by 11cts from Friday's (7/10) last pegged level of a 27cts 
discount, according to West Coast market participants.
The move lower comes as supply concerns remain limited across the West Coast, 
with no refinery flaring activity reported Monday. U.S. Energy Information 
Administration data for the week ended July 3 showed jet fuel inventories in 
the PADD 5 region increased by 200,000 bbl to 11 million bbl. Inventories were 
200,000 bbl below the level reported during the same week last year.

    

   Phillips 66 Sweeny Refinery Reports Power Upset

   Phillips 66 reported an emissions event at its 277,000 bpd Sweeny Refinery 
and Petrochemical Complex in Old Ocean, Texas, after a sudden power 
interruption caused a process upset, according to a filing with the Texas 
Commission on Environmental Quality.

   The event was reported Sunday (7/12). It began on Saturday (7/11) at 1:06 
p.m. and ended Sunday at 11:48 a.m. CT, the filing said.

   According to the filing, the power interruption disrupted operations at 
Units 7, 19, and 20, including units associated with gasoline processing, 
resulting in flaring from multiple refinery systems. The largest emissions came 
from the Coker Flare, including approximately 1,646 pounds of sulfur dioxide, 
507 pounds of C5+ hydrocarbons and 321 pounds of carbon monoxide. Additional 
emissions were reported from Flare 11, Flare 16, Flare 17 and Flare 19.

   Operations personnel worked to restore power, stabilize the affected units 
and return the refinery to normal operating status. 

   The Sweeny Refinery and Petrochemical Complex is one of the largest refining 
and petrochemical facilities in Texas. It processes a wide range of crude oil 
grades and primarily produces gasoline, diesel, jet fuel and petrochemical 
feedstocks.

   DTN reached out to Phillips 66 for additional details but did not get an 
immediate response.

    

   OPEC Cuts Oil Demand 3rd Month in Row Amid Gulf Tensions

   OPEC downgraded its 2026 global oil demand growth forecast for a third 
consecutive month on Monday (7/13), citing renewed U.S.-Iran fighting that was 
once again straining oil shipments passing through the Strait of Hormuz.

   Vienna-based OPEC, known in full as the Organization of the Petroleum 
Exporting Countries, said in its July monthly report that it was revising its 
2026 demand growth projection downward by 190,000 bpd to 780,000 bpd. That 
would leave total estimated consumption at 105.94 million bpd, versus a prior 
106.13 million.

   The demand cuts were largely concentrated in Asia, with China's consumption 
forecast trimmed by 110,000 bpd and India's by 60,000 bpd. Conversely, the 
12-member OPEC upgraded its 2027 global oil demand growth forecast by 210,000 
bpd to 1.73 million bpd.

   On the supply side, secondary sources indicated that overall crude 
production from OPEC+, an enlarged 23-member grouping that includes Mexico, 
rose by roughly 3 million bpd in June to average 36.28 million bpd.

   Despite this broader alliance increase, leading exporter Saudi Arabia 
registered lower monthly output numbers compared to May.

   The downgrade in OPEC demand outlook follows a rapid U.S.-Iran escalation 
over the weekend since the two sides called off last week a mid-June ceasefire 
agreement that came after roughly four months of war. Both have since claimed 
control over the Hormuz, with Tehran pronouncing the waterway closed and 
Washington insisting that tanker traffic was continuing through a 
U.S.-protected corridor on the chokepoint. Ship traffic data showed that flows 
this weekend fell to their lowest in five weeks. Observable crossings have 
almost completely ceased, while a handful of tankers attempted to traverse the 
chokepoint with transponders turned off. Prior to the war, the strait saw 
passage of about 20 million bpd of petroleum liquids.

   Despite its demand cut, OPEC's projections remain significantly more 
optimistic than rival forecasters tracking the impact of the four-month 
conflict. The International Energy Agency expects global demand to decline by 1 
million bpd this year, while the U.S. Energy Information Administration 
projects a contraction of 1.2 million bpd.

    

   Keystone Operator to Pay Nearly $70M for Kansas Oil Spill

   The U.S. Environmental Protection Agency (EPA), the U.S. Department of 
Justice, and the state of Kansas have reached a $70 million settlement with the 
owner and operator of the Keystone Pipeline over a 2022 oil spill in rural 
Kansas.

   Federal and state officials announced the agreement with South Bow (USA) and 
South Bow Infrastructure Operations, resolving Clean Water Act violations 
stemming from a December 7, 2022, pipeline rupture in Washington County, 
according to an EPA statement released late Friday (7/10).

   Under the settlement, South Bow agreed to pay a $26.8 million civil penalty, 
fund an estimated $40 million in infrastructure improvements to prevent future 
spills, and contribute $3 million to Kansas for natural resource restoration. 
The combined value totals roughly $70 million.

   The pipeline rupture released nearly 13,000 bbl of crude oil across land and 
into Mill Creek, killing or impacting more than 2,700 animals and blanketing 
the waterway bank-to-bank for 3.5 miles. It stands as the largest discharge in 
the history of the Keystone Pipeline system.

   Following a 2023 EPA cleanup order, South Bow removed oil and restored 
aquatic habitat along Mill Creek. Kansas health officials had previously issued 
an advisory prohibiting human, livestock, and pet contact with the creek.

   The 2,687-mile Keystone Pipeline runs from Alberta, Canada, to Port Arthur, 
Texas.




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