U.S. Rack ULSD Up 28.4cts; Gasoline Rebounds


   
Miguel E. Andujar
DTN Refined Fuels Market Reporter

   DAVENPORT, FL (DTN) -- Wholesale rack prices for ultra-low sulfur diesel and 
gasoline moved higher Wednesday (3/25), rebounding from Tuesday's sharp 
declines, as physical markets remained supported by recent supply disruptions 
even as futures prices turned lower on shifting geopolitical signals tied to 
the Iran war.

   Nationwide ULSD rack prices averaged $4.1755 gallon, up 28.40cts from 
Tuesday's $3.8915 gallon, according to DTN data. Conventional unleaded gasoline 
rack prices averaged $3.1838 gallon, up 14.58cts from $3.0380 gallon. Premium 
grade gasoline also increased across all regions.

   ULSD racks rose across all regions Wednesday, with the largest increases 
seen in PADD 5 and PADD 3. West Coast ULSD climbed 36.08cts to $5.1521 gallon, 
maintaining the strongest regional premium. Gulf Coast prices rose 34.94cts to 
$4.2411 gallon, while East Coast values increased 26.12cts to $4.3564 gallon. 
Midwest ULSD moved 23.70cts higher to $3.7466 gallon, while PADD 4 posted the 
smallest increase, up 13.10cts to $4.2916 gallon.

   Relative to the national ULSD rack average of $4.1755 gallon, PADD 5 held 
the widest premium at 97.66cts above the U.S. benchmark, followed by PADD 1 at 
18.09cts above and PADD 4 at 11.61cts above. PADD 3 traded modestly above the 
national average, while PADD 2 remained the deepest discount at 42.89cts below 
the benchmark.

   On conventional unleaded gasoline racks, all regions moved higher Wednesday. 
PADD 3 recorded the largest increase, rising 18.53cts to $2.9089 gallon. PADD 1 
increased 14.68cts to $2.9059 gallon, while PADD 5 climbed 13.35cts to $3.8904 
gallon. PADD 2 rose 12.52cts to $2.7486 gallon, maintaining the deepest 
discount nationally, while PADD 4 posted the smallest increase, up 4.59cts to 
$3.2518 gallon.

   Compared with the national gasoline average of $3.1838 gallon, PADD 5 
remained the only region trading at a premium, at 70.66cts above the benchmark. 
All other regions held discounts, led by PADD 2 at 43.52cts below the national 
average, followed by PADD 1 at 27.79cts and PADD 3 at 27.49cts. PADD 4 remained 
slightly above the benchmark.

   Premium gasoline rack prices increased across all regions, broadly in line 
with conventional gasoline. PADD 3 posted the largest increase, up 18.31cts to 
$3.4364 gallon, followed closely by PADD 1, up 18.22cts to $3.5359 gallon. West 
Coast premiums remained elevated at $4.2842 gallon.

   Futures prices moved sharply lower Wednesday morning. Front-month May NYMEX 
ULSD futures fell 28.84cts to $3.7249 gallon, while May RBOB gasoline futures 
declined 15.80cts to $2.9366 gallon. WTI crude for May delivery dropped $3.77 
to $88.54 bbl.

   The pullback in futures followed reports that the United States proposed a 
15-point plan aimed at ending the conflict with Iran, introducing the 
possibility of de-escalation. At the same time, continued exchanges between 
Israel and Iran, along with additional U.S. troop movements, kept uncertainty 
elevated, with Iranian leadership denying any active negotiations.

   That push and pull between de-escalation headlines and ongoing disruptions 
has created a disconnect between futures and physical markets. Futures have 
reacted quickly to shifting expectations around a potential resolution, while 
rack prices continue to reflect tighter near-term supply conditions after weeks 
of disrupted Middle Eastern crude flows.




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