MARKETWIRE ALERTS
MARKETWIRE ALERTS
MarketWire Afternoon News June 18th:
Updated at 5:00 PM ET
MarketWire is Closed Friday for Juneteenth Federal Holiday
MarketWire is closed Friday (6/19) for the Juneteenth federal holiday,
resuming market coverage on Monday (6/22).
HEADLINES:
-- USGC Weekly: Jet Fuel Spot Prices Drop Amid Stock Rise
-- Midwest Weekly: Spot Fuels Down Broadly as Stocks Spike
-- PNW Sub-Octane Premium Falls as July RBOB Futures Rise
-- Baker Hughes: Weekly North America Rig Count Up 7
-- USWC Summer Fuel Markets Cool as Supply Concerns Ease
-- Analysis: EIA Sees U.S. Crude Stocks Fall to 41-Yr Low
-- EIA: US NatGas Storage Reports 73 Bcf Weekly Injection
-- AAR: Petroleum Carloads Up 7.4% for Week Ended June 13
-- CEC: California Gasoline Stocks Fall 301,000 Bbl on Week
-- CEC: California Diesel Stocks Fall 15,000 Bbl on Week
-- U.S.-Iran Sign Deal to End War, Reopen Hormuz Strait
NEWS:
USGC Weekly: Jet Fuel Spot Prices Drop Amid Stock Rise
Fuel spot prices the U.S. Gulf Coast (USGC) weakened as of Thursday (6/18)
as concerns about an extended conflict in the Middle eased following the
announcement this week of a preliminary agreement between the United States and
Iran to end hostilities and reopen the Strait of Hormuz.
USGC jet fuel spot prices posted their sharpest decline as of Thursday
(6/18) dropping 13% week over week to $2.82 gallon, 16.43% lower than in the
corresponding week a year earlier.
Meanwhile, USGC ultra-low sulfur diesel (ULSD) and CBOB regular grades edged
down 9.42% and 3.36% on week to be assessed at $3.1701 gallon and $2.80 gallon,
respectively. On a yearly basis, ULSD dropped 24.34%, while CBOB sank 33%,
according to DTN data.
Jet fuel inventories in the U.S. Gulf Coast (PADD 3) rose by 200,000 bbl to
15.9 million bbl during the reference week and remained above the 14.3 million
bbl seen in the comparable week last year, according to the U.S. Energy
Information Administration (EIA) data released Wednesday. As a net exporter of
distillate and jet fuel, the Gulf Coast reported essentially no imports of
either product during the week.
In contrast, motor gasoline inventories in PADD 3 declined by 2 million bbl
to 77.8 million bbl and remained below the 87.6 million bbl reported during the
same week last year. The inventory level was the lowest since the week ended
November 7, 2025, when gasoline stocks stood at 77.5 million bbl, the EIA data
showed. Motor gasoline imports into the Gulf Coast averaged 141,000 bpd last
week, up from 120,000 bpd the prior week and above the 31,000 bpd recorded
during the comparable week last year.
Meanwhile, PADD 3 distillate fuel oil inventories, dropped by 400,000 bbl to
39.7 million bbl during the profiled week from 40.1 million bbl the previous
week. Inventories remained below the 44.3 million bbl reported during the same
week last year and reached the lowest level since the week ended May 8, 2025,
when stocks stood at 39 million bbl.
The EIA reported that refinery utilization declined to 96.2% from 97.4% in
the week ended June 12, while crude oil inputs climbed by 28,000 bpd to 9.429
million bpd.
On refinery news, Marathon Petroleum reported Tuesday (6/16) a 23-hour
flaring event at the Fluid Catalytic Cracking Unit No. 3 (FCCU3) of its 631,000
bpd Galveston Bay Refinery in Texas City, according to a filing with
environmental regulators. The FCCU3 experienced an unplanned shutdown, the
company said.
Midwest Weekly: Spot Fuels Down Broadly as Stocks Spike
Midwest fuel spot prices continued their slide this week, led by the drop in
ultra-low sulfur diesel (ULSD) values on the Wolverine pipeline. DTN data
showed Thursday (6/18) that the downward trend across the region persisted as
regional product supplies expanded over the week and as the U.S.-Iran peace
deal pressured energy prices across the board.
The Wolverine-ULSD average spot price took the single biggest hit across the
entire Midwest region, plunging 33.44cts to a weekly average of $3.0896 gallon.
The Buckeye Complex-ULSD spot value followed closely behind that drop, shedding
33.14cts to average $3.0806 gallon for the week.
Chicago-ULSD prices also experienced a hefty contraction during the weekly
session, dropping 31.78cts to reach a weekly average price of $3.0511 gallon.
Group 3-ULSD values slid 25.89cts lower to average $3.0721 gallon, representing
a clear downward trend as regional trading drew to a close.
The price slump came as the U.S. Energy Information Administration reported
that distillate fuel oil inventories in PADD 2 rose by 1.0 million bbl. That
substantial weekly build placed regional distillate inventories 1.2 million bbl
higher than the 25.1 million bbl logged during the same week last year.
Midwest distillate fuel oil imports also rose last week, averaging 9,000
bpd, which was 4,000 bpd higher from the prior week, the EIA said. However, the
government agency noted that these regional imports still remained 5,000 bpd
lower than the levels recorded during the prior year.
In the Midwest jet fuel market, Chicago jet fuel values lost 18.84cts on the
week to average a lower $2.6026 gallon. Group 3 jet fuel prices tumbled at an
identical pace, dropping 18.84cts to average $2.5926 gallon according to the
latest compiled DTN market data.
Regional jet fuel inventories rose by 700,000 bbl to 8.1 million bbl last
week, staying a comfortable 700,000 bbl above corresponding year-ago levels.
On the gasoline front, Wolverine-CBOB regular gave up 7.94cts and Buckeye
Complex-CBOB averages softened by 5.24cts over the weekly session to a common
average of $2.8984 gallon. Chicago-CBOB regular recorded a milder weekly slide
among the group, easing 7.04cts to an average of $2.8604 gallon this week.
Group 3-Suboctane gasoline also flipped into negative territory, dropping
12.69cts to reach a weekly average of $2.8319 gallon during this processing
cycle. This notable decline reversed the previous week's gains despite the
market entering what is traditionally the absolute heart of the summer driving
season.
PADD 2 gasoline inventories increased by 200,000 bbl on the week to 44.6
million bbl, according to official data released by the EIA. On the year, PADD
2 gasoline stocks remained down by 2.6 million bbl from the 47.2 million bbl
level seen during last year.
PNW Sub-Octane Premium Falls as July RBOB Futures Rise
The Pacific Northwest sub-octane gasoline premium weakened sharply Thursday
(6/18), declining by 16cts even as the underlying July NYMEX RBOB futures
contract rose, amid continued weakness in regional gasoline market sentiment.
An offer was heard in the market at an 18cts premium to July NYMEX RBOB
futures, bringing the Pacific Northwest sub-octane premium to a current
indication of a 17.5cts premium, down 16cts from Wednesday's (6/17) last
assessed value.
The product was last seen trading near this level on March 9, 2025, when
Pacific Northwest sub octane regular gasoline traded at an 18.25cts premium,
according to DTN data.
Motor gasoline inventories in the PADD 5 region rebounded after a five-week
decline, climbing by 700,000 bbl to 28 million bbl during the week ended June
12, after increasing from 27.3 million bbl the prior week, the EIA's Weekly
Petroleum Status Report showed Wednesday.
Year-on-year, gasoline stocks in the region were 1.2 million bbl lower. PADD
5 gasoline imports fell by 13,000 bpd to 96,000 bpd last week and were 73,000
bpd lower compared with the same week last year, the EIA said.
Baker Hughes: Weekly North America Rig Count Up 7
North American energy drilling activity increased by seven rigs this week,
according to Baker Hughes' weekly rigs report released Thursday (6/18).
The regional rig count for the week ended June 18 stood at 749, compared to
742 in the previous week.
Year-on-year, rigs for Canada and the U.S. combined were up 56 from the 693
actively deployed in the same week of 2025.
This week's increase was led by gains in both countries. Canada added six
rigs on the week, while the U.S. rig count increased by one.
As a result, Canada's tally stood at 186, while the U.S. count rose to 563.
In the United States, gas-directed rigs increased by one to 122.
Oil-directed rigs were unchanged at 433, while miscellaneous rigs held steady
at eight.
By trajectory, U.S. horizontal rigs increased by one to 479, and directional
rigs climbed by three to 72. Vertical rigs were unchanged at 11.
USWC Summer Fuel Markets Cool as Supply Concerns Ease
U.S. West Coast fuel markets are entering the summer driving season on a
much calmer note than many traders expected earlier this year, as improving
inventories and a lack of major refinery disruptions have helped ease supply
concerns that pushed gasoline, diesel and jet fuel values sharply higher during
the spring.
For much of April and May, refinery maintenance, flaring events and concerns
over the region's shrinking refining system supported strong premiums across
West Coast fuel markets. In June, however, the trend has begun to reverse.
The biggest move has come in diesel. San Francisco ULSD basis fell 35cts on
June 9 to a 5cts premium over July NYMEX ULSD futures, its lowest level since
March 24, 2026. The decline erased much of the risk premium that built up
earlier this year when refinery issues tightened supply and pushed diesel
values higher.
Gasoline markets have also softened. Los Angeles CARBOB regular traded as
low as a 22cts premium to NYMEX RBOB futures on June 10 before recovering
slightly to a 24cts premium. Further north, Pacific Northwest sub octane basis
fell 8cts on June 16 to a 9.5cts premium, its lowest level since March 25, 2026.
Jet fuel has moved lower as well. Los Angeles jet fuel basis dropped to an
8cts discount against July NYMEX ULSD futures on June 10, down 5cts on the day.
The move stands in contrast to last summer, when operational issues at
Chevron's El Segundo refinery contributed to tighter jet fuel supplies and
stronger premiums across the region.
A major factor behind the recent weakness has been the lack of refinery
disruptions. Unlike earlier this spring, there have been few significant
flaring events or unplanned outages reported at major West Coast refineries in
recent weeks. With fewer operational issues making headlines, traders have
become more comfortable with the region's near-term supply outlook.
Inventory data have also offered some support. EIA data released June 17
showed PADD 5 gasoline inventories climbed by 700,000 bbl to 28.0 million bbl
during the week ended June 12, rebounding after five consecutive weekly
declines. While inventories remain 1.2 million bbl below 2025 levels, the
increase helped reinforce the view that gasoline supplies are improving as
summer demand ramps up.
Crude oil inventories increased by 1.3 million bbl to 45.2 million bbl
during the same period. Distillate inventories fell by 200,000 bbl to 10
million bbl and were 600,000 bbl lower than a year earlier, while jet fuel
stocks slipped by 100,000 bbl to 10.9 million bbl and were 900,000 bbl below
levels reported a year ago.
Refinery utilization in the region declined to 85.3% from 93.4% the previous
week. Even so, inventories remained relatively stable, suggesting refiners are
keeping pace with demand despite lower run rates.
The recent pullback in fuel premiums marks a significant shift from the
market conditions seen just a few months ago. While the West Coast still
operates with less refining capacity following the closure of Phillips 66's
139,000 bpd Wilmington refinery and the ongoing shutdown of Valero's 145,000
bpd Benicia refinery, recent trading activity suggests the market is becoming
less focused on supply risks and more focused on improving fundamentals.
That could change quickly if a major refinery outage occurs during the peak
summer driving season. With fewer refineries available to absorb unexpected
disruptions, the region remains vulnerable to supply shocks. For now, however,
improving inventories, softer spot values and the recent absence of significant
refinery flaring have allowed West Coast fuel markets to enter summer with
considerably less concern about fuel availability than earlier this year.
Analysis: EIA Sees U.S. Crude Stocks Fall to 41-Yr Low
Total crude oil inventories have plummeted by more than 17 million bbl last
week last week to their lowest in more than four decades, U.S. Energy
Information Administration data showed Wednesday (6/18). Nearly 9 million bbl
were released from the Strategic Petroleum Reserve, while commercial
inventories shrank by more than 8 million bbl.
Commercial crude oil stocks haven't been this depleted this time of year in
over a decade. While they aren't alarmingly low, the draws came much earlier
than in a typical year where seasonally rising domestic demand is the main
factor in the inventory decline. Surging exports caused by the Middle East
supply disruption have since mid-April led to an unprecedented draw pace
averaging nearly 850,000 bpd. Now that domestic refiners are ramping up and
demand reaches its seasonal peak, stock draws may even accelerate as exports
are likely to remain elevated.
Despite expectations of an imminent reopening of the Strait of Hormuz,
Middle Eastern supply won't immediately be back in full force, and will likely
take months to recover close to pre-war levels, meaning international demand
for U.S. crude oil is set to stay strong over this time. Even if that weren't
the case, exports will only ebb with some delay, given that most cargoes
leaving U.S. shores are booked weeks in advance.
At the same time, refiners, which have in light of high margins already run
above year-ago levels, are increasing production to meet summer driving demand.
Crude oil inputs rose 230,000 bpd on the week, and at nearly 17.2 million bpd
were up 330,000 bpd year-on-year. While inputs have limited room to grow given
that average refinery utilization is already at 96.7%, even a modest increase
in domestic demand will put additional strain on already tight inventories.
The ongoing emergency stockpile releases, meanwhile, have feathered the fall
in commercial stocks. The SPR has so far shrank by more than 75 million bbl, or
just over 18%. At 340 million bbl, emergency crude reserves are at their lowest
since 1983, and less than half of the agreed 172 million bbl have so far been
released.
The rapid decline has left total domestic crude oil inventories at 758.5
million bbl, the least since 1985, and nearly 8% below year-ago levels. With
international demand likely here to stay, domestic demand still ramping up and
further emergency releases scheduled, stocks are set to continue to plummet,
setting a floor under prices.
EIA: US NatGas Storage Reports 73 Bcf Weekly Injection
Energy Information Administration data released midmorning Thursday (6/18)
show a 73 billion cubic feet injection into U.S. natural gas storage to 2.759
trillion cubic feet in the week ended June 12.
Natural gas in U.S. storage is 1% lower than last year and 5.8% above the
five-year average of 2.608 Tcf.
Regionally, EIA reports the East registered a 18 Bcf injection to 532 Bcf,
4.7% less than a year ago and 0.6% higher than the five-year average.
Natural gas in storage in the Midwest increased 28 Bcf week-on-week to 638
Bcf, a 0.6% surplus compared to the same week a year ago and 3.9% higher than
the five-year average.
Mountain region natural gas in storage increased 4 Bcf, up 5.1%
year-on-year to 27.7% above the five-year average.
South Central storage rose 16 Bcf to 1053 Bcf, 5% less than in the same
week last year and 0.3% above the five-year average.
AAR: Petroleum Carloads Up 7.4% for Week Ended June 13
The Association of American Railroads (AAR) reports that petroleum and
petroleum product carloads totaled 11,054 during the week ended June 13, up
7.4% from the same week a year ago.
Year-to-date, cumulative petroleum and petroleum products carloads totaled
251,030, up 7.7% from the same period a year ago, an AAR report published on
Wednesday (6/17) showed.
Total weekly traffic for the profiled week reached 520,406 carloads and
intermodal units, representing an increase of 7.2% from the corresponding week
a year ago. Total carloads for the specific week ended June 13 reached 230,959,
showing an expansion of 2.8% compared with the same week of last year.
Weekly intermodal volume for the period reached 289,447 containers and
trailers, representing an increase of 10.9% from the corresponding week of the
prior year. Year-to-date, cumulative U.S. railroad carloads reported for the
first 23 weeks of the current year stood at 5,215,944, up 3.2% from the same
point last year.
Cumulative intermodal units over the same year-to-date timeframe reached
6,403,177 units, representing an improvement of 2.7% compared to the same
period a year ago. Total combined rail traffic for the first 23 weeks of the
year reached 11,619,121 carloads and intermodal units, expanding 2.9% compared
to the prior year.
CEC: California Gasoline Stocks Fall 301,000 Bbl on Week
California Energy Commission data show statewide gasoline inventories
declined in the week ending June 12, as the agency now reports only statewide
totals in its Weekly Fuels Report released on Friday (6/19).
Statewide gasoline stocks, including CARB reformulated, non-California, and
blending components, slipped by 301,000 bbl to 9.398 million bbl from 9.699
million bbl the previous week and were 17% lower than the same period last year.
Statewide gasoline production fell by 66,000 bbl to 5.495 million bbl from
5.561 million bbl the prior week and was 8% below 2025 levels.
CEC: California Diesel Stocks Fall 15,000 Bbl on Week
California Energy Commission data show statewide diesel inventories declined
in the week ending June 12, as the agency now reports only statewide totals in
its Weekly Fuels Report released on Thursday (6/18).
Statewide CARB diesel and other diesel fuel stocks fell by 15,000 bbl to
2.172 million bbl from 2.187 million bbl the previous week and were 24% lower
than the same period last year.
Statewide diesel production slipped by 16,000 bbl to 1.354 million bbl from
1.370 million bbl the prior week and was 9% below year ago levels.
U.S.-Iran Sign Deal to End War, Reopen Hormuz Strait
The U.S. and Iran have signed a remote agreement to permanently end active
military hostilities between them and reopen shipping for energy and other
critical commodities on the blockaded Strait of Hormuz.
Facilitated by international mediators, the accord took effect Wednesday
(6/17) after physical and digital copies of the text were executed by the
leadership of both nations in their capitals.
The deal set a 60-day negotiating window to finalize sensitive discussions
over Tehran's nuclear program that the U.S. justified as reason for initially
partnering with Israel to bomb Iran, before the blockade of the Hormuz emerged
as a primary macroeconomic driver for ending hostilities.
U.S. President Donald Trump maintained on Wednesday that the deal was not
cast in stone. "If I don't like it, we'll go back to shooting at them, dropping
bombs," he told reporters in Washington before the signing.
In Tehran, Iranian state media confirmed the executive action, broadcasting
images of President Masoud Pezeshkian verifying the finalized diplomatic
document alongside official signatures from Washington. On the end, Iranian
officials emphasized that the implementation of the deal remains tied to the
reciprocal lifting of the U.S. naval blockade on its domestic shipping.
The diplomatic breakthrough directly alters physical supply dynamics by
guaranteeing the immediate reopening of the Hormuz chokepoint without maritime
tolls planned by Iran, for at least the next two months. This vital transit
lane has remained largely impassable over the past 3-1/2 months to
approximately 20 million bpd of petroleum liquids and global liquefied natural
gas.
Crude prices have fallen more than 11% this week alone over the anticipated
shipping relief for
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