USGC Weekly: Jet Fuel Leads Spot Price Rally


   
Miguel E. Andujar
DTN Refined Fuels Market Reporter

   DAVENPORT, FL (DTN) -- U.S. Gulf Coast (USGC) fuel spot prices strengthened 
during the week ended July 17, supported by a decline in gasoline inventories, 
which fell to their lowest level in nearly eight years, while crude oil stocks 
remained near five-month lows. The drawdown in stockpiles was fueled by renewed 
concerns over potential disruptions through the Strait of Hormuz.

   Jet fuel posted the strongest weekly advance, rising 67.82cts, or 23.19%, 
week over week to average $3.6022 gallon, as the USGC continued to serve as a 
critical supplier to the global aviation market. The weekly jet fuel spot price 
average was 58.49% above the corresponding period of the previous year.

   Ultra-low sulfur diesel (ULSD) spot prices also rallied on the week, 
increasing 55.50cts, or 16.25%, to average $3.9715 gallon. This was 71.83% 
higher than the value reported during the same period last year. Firm seasonal 
demand combined with constrained global supply following Russia's export 
restrictions after Ukrainian drone strikes targeted key refinery facilities 
provided the primary support for the diesel spot rally.

   On gasoline, CBOB regular in the USGC region increased 28.82cts, or 10.15%, 
to average $3.1270 gallon on a weekly basis and was 65.02% higher than during 
the same period last year.

   The weekly advances came as front-month WTI crude futures climbed roughly 
13% during the week, moving above the $80 bbl threshold from the previous 
Friday's settlement of $71.41 bbl to settle at $82.49 bbl. The rally was driven 
by renewed hostilities between the United States and Iran, along with 
escalating concerns over the Strait of Hormuz.

   Mixed inventory data from the U.S. Energy Information Administration 
underscored continued tightness in the Gulf Coast fuels market. PADD 3 gasoline 
inventories fell by 900,000 bbl to 75.5 million bbl during the week ended July 
10, the lowest level since the week ended September 22, 2017, when stocks were 
74.2 million bbl. Inventories remained 9 million bbl below the same week of the 
previous year, while gasoline imports declined to 29,000 bpd from 59,000 bpd 
the prior week.

   Distillate fuel oil inventories increased by 2 million bbl to 45.9 million 
bbl, though stocks remained near historically tight seasonal levels. 
Inventories were 2.7 million bbl above the same week of the previous year. 
Meanwhile, jet fuel inventories increased by 500,000 bbl to 17.1 million bbl, 
standing 2.2 million bbl above the comparable week of the previous year.

   PADD 3 crude oil inventories fell by 1.3 million bbl to 235.9 million bbl, 
the lowest level since the week ended February 27, 2026, and 4.9 million bbl 
below the same week of the previous year. Crude imports increased slightly to 
846,000 bpd from 841,000 bpd the prior week.

   Refining activity in the U.S. Gulf Coast remained elevated, with refinery 
utilization increasing to 97.1% from 96.5% as crude oil inputs rose to 9.507 
million bpd. Several facilities reported isolated emission events, including 
Phillips 66's 277,000 bpd Sweeny refinery, CITGO's 167,000 bpd Corpus Christi 
West refinery, and Alon USA's 74,000 bpd Big Spring refinery. However, no 
prolonged outages or major regional supply disruptions were reported.




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