MARKETWIRE ALERTS
Maria Eugenia Garcia
DTN Energy Editor
MARKETWIRE ALERTS
MarketWire Afternoon News Aug 6th:
Updated at 5:40 PM ET
HEADLINES:
-- USWC Gasoline Basis Mixed Despite Ample Stocks
-- Midwest CBOB Basis Narrow to Merc Levels Amid NYMEX Rally
-- AAR: Petroleum Carloads Up 5.9% for Week Ended Aug 1
-- Cheniere Swings to Q2 Net Profit as LNG Cargo Up a Fifth
-- Analysis-Midwest Fuel Supply Tightens on Hub Disruptions
-- CEC: California Diesel Stocks Fall 345,000 Bbl
-- CEC: California Gasoline Stocks Rise 732,000 Bbl
-- ConocoPhillips Q2 Net Profit Up 95% on Higher Crude Prices
-- FCC Upset Triggers SO2 Release at Marathon El Paso Refinery
-- EIA: U.S. NatGas Storage Sees 33 Bcf Weekly Injection
-- Oxy Q2 Net Income Jumps 11-Fold Y-O-Y on Crude Price Surge
NEWS
USWC Gasoline Basis Mixed Despite Ample Stocks
West Coast gasoline basis traded mixed Thursday (8/6), with Portland
sub-octane weakening while Los Angeles CARBOB strengthened
following California inventory data released earlier in the day.
Portland suboctane basis was assessed at a 4cts discount to September NYMEX
RBOB futures, weakening 9.50cts from the previous session. San Francisco CARBOB
regular eased 1 cent to a 26cts premium, while Los Angeles CARBOB regular
strengthened 8cts to a 28cts premium against the same benchmark, according to
DTN Energy data.
Earlier Thursday, the California Energy Commission reported statewide
gasoline inventories increased by 732,000 bbl to 9.726 million bbl during the
week ended July 31, while production climbed by 626,000 bbl to 5.750 million
bbl.
Midwest CBOB Basis Narrow to Merc Levels Amid NYMEX Rally
Midwest CBOB cash basis differentials weakened Thursday (8/6) with Buckeye
and Wolverine pipeline values falling to Merc levels, even when Middle
Eastrenewed hostilitiestriggered a gasoline futures rally on the day.
Chicago CBOB led cash market declines, falling 4.5cts on the session to be
assessed at a 5.0cts discount to September NYMEX RBOB futures.
The Buckeye and Wolverine CBOBpipeline basis valuesfell by 3cts each
to trade at parity with the Mercantile Exchange benchmark.
The cash basis weakness stood in sharp contrast to the paper market, where
refined product futures surged more than 3% following reports of potential
commercial shipping blockades in the Strait of Hormuz.
NYMEX September RBOB futures climbed $0.0997 to settle at $2.9385 gallon on
Thursday, while September WTI crude rose $2.07 to $77.29 bbl.
Despite Thursday's futures rebound, local cash prices remain under pressure
after Chicago CBOB regular plummeted almost 40cts, or about 11%, week-on-week
to average at just above $3.0000 gallon. Physical trade across PADD 2 channels
remains tangled by operational issues at key regional transit hubs and
processing centers.
Unplanned disruptions to secondary units at Phillips 66's 356,000 bpd Wood
River refinery in Roxana, Illinois, have periodically trimmed finished fuel
output and forced distributors into the spot market for replacement barrels.
Logistics bottlenecks at the Lamar terminal pipeline hub near the
Colorado-Kansas border have also constrained northbound product velocity into
mid-continent distribution networks.
As a major crossover hub for Gulf Coast and Rocky Mountain supply lines,
throughput delays or allocation limits at Lamar continue to whip cash
differentials around. The localized supply friction coincides with tightening
regional supply, as Energy Information Administration data showed PADD 2
gasoline stocks drawn by 900,000 bbl to 43.4 million bbl during the week ended
July 31.
AAR: Petroleum Carloads Up 5.9% for Week Ended Aug 1
The Association of American Railroads reported that petroleum and petroleum
product carloads totaled 11,470 during the week ended August 1, up 5.9% from a
year ago.
Table of key AAR data for week ended August 1:
August 1, 2026 ? ? Year-To-Date
? Cars Y/Y change (%)Cumulative
Total Carloads 233,171-0.4% 6,811,496
Petroleum and Products11,470 5.9% 330,154
Total Intermodal Units293,2394.8% 8,418,215
Total Traffic 526,4102.4% 15,229,711
Cheniere Swings to Q2 Net Profit as LNG Cargo Up a Fifth
Cheniere Energy Inc announced Thursday (8/6) it swung to a net profit in the
second quarter of 2026 from a loss in the prior three months as the largest
U.S. producer of liquefied natural gas shipped a fifth more cargo than it did a
year ago.
Net income at Cheniere rose to $3.07 billion from $1.63 billion in the
second quarter of 2025. In the first quarter of 2026, it reported a net loss of
$3.502 billion. Quarterly revenue grew 24% year-over-year to $5.73 billion,
compared to $4.64 billion reported in the prior year period.
In terms of exports, the company had 184 LNG cargoes during the second
quarter of 2026, versus the 154 shipped a year ago.
Total export volumes reached 672 trillion British thermal units (Btu), up
22% from 550 trillion Btu shipped a year earlier.
Operational gains were driven by substantial completion of Midscale Train 6
at the Corpus Christi Stage 3 Project in June.
Analysis-Midwest Fuel Supply Tightens on Hub Disruptions
Recurring operational outages at Midwest refining and transit hubs is
squeezing prompt product availability across the region's distribution
channels, triggering localized spot price swings despite high overall regional
refinery processing rates.
The volatility is most pronounced in Midwest gasoline, with Chicago CBOB
regular plummeting more than 38cts, or 11.3%, week-on-week to average $3.0015
gallon,according to DTN data.
Chicago jet fuel spot marks have also experiencedsharpswings, sliding
nearly 60cts from late July highs near $3.86 gallon to trade around $3.2687
gallon by Aug. 6.
The primary operational catalyst appears to be the Phillips 66's 356,000 bpd
Wood River refinery in Roxana, Illinois. Hiccups at thefacilityhave
periodically trimmed finished fuel output. Unplanned disruptions to its
secondary units, including fluid catalytic cracking and hydrotreating capacity,
have forced local distributors to scramble for physical replacement barrels in
spot markets.
Further west, logistics bottlenecks at the Lamar terminal pipeline hub near
the Colorado-Kansas border have restricted northbound product movements into
mid-continent distribution networks. As a crucial crossover hub connecting Gulf
Coast and Rocky Mountain supply lines with PADD 2 channels, throughput delays
or terminal allocation limits at Lamar abruptly constrict spot barrel velocity.
Vulnerable Supply
While local supply bottlenecks at Lamar and Wood River provided underlying
support to basis differentials, the steep drop in benchmark NYMEX futures --
driven by global macro headlines -- have dragged cash prices lower overall.
Additionally, localized sell-side pressure from refiners unloading prompt
gasoline added to the downward pressure as PADD 2 refinery utilization remained
elevated. This has made underlying supply flows remain vulnerable to
unannounced unit-level trims and pipeline throughput constraints.
"Supply issues at Lamar and Wood River, combined with a lack of sell-side
presence from majors, have whipped the cash market around," a Midwest fuels
trader told DTN. "When you pair those physical disruptions with two or three
heavy down days on NYMEX driven by Middle East peace talks, prices are
scrambling to find their footing."
The physical tightness coincides with a drop in Midwest refinery runs, which
fell to 98.2% capacity during the week ended July 31 from 101.4% the prior
week, according to Energy Information Administration data. Refiner crude inputs
in PADD 2 slipped to 4.192 million bpd from 4.336 million bpd the previous
week, reflecting reduced regional processing activity.
During that same reporting week, PADD 2 motor gasoline stocks drew by
900,000 bbl to 43.4 million bbl, standing 2.1 million bbl below year-ago
levels. Regional distillate inventories also dipped, falling by 200,000 bbl to
28 million bbl, though total distillate holdings remain 700,000 bbl above the
corresponding week in 2025.
Jet fuel inventories bucked the broader drawdown trend across refined
products, building by 400,000 bbl to reach 7.7 million bbl. The weekly
accumulation placed regional jet fuel stocks 300,000 bbl above the 7.4 million
bbl recorded during the same week last year.
Despite regional transit friction, Midwest refiners maintain a privileged
feedstock cost structure due to landlocked access to 2.75 million bpd of heavy
Canadian crude.
CEC: California Diesel Stocks Fall 345,000 Bbl
CEC: Weekly Fuels Watch - California Diesel Stocks and Production
For week ended: July 31, 2026 ? ?
? Refinery Stocks (bbl) Production (bbl) ?
? 2,744,000 1,456,000 ?
-345,000 -22,000 ?
W/W
-12.6% -1.5% ?
-10,237,000 6,097,000 ?
Y/Y
-81.0% -76.1% ?
CEC: California Gasoline Stocks Rise 732,000 Bbl
CEC: Weekly Fuels Watch - California Gasoline Stocks and Production
For week ended: July 31, 2026 ? ?
? Refinery Stocks (bbl) Production (bbl) ?
? 9,726,000 5,750,000 ?
732,000 626,000 ?
W/W
7.5% 12.2% ?
-2,178,000 6,097,000 ?
Y/Y
-17.2% -5.7%
ConocoPhillips Q2 Net Profit Up 95% on Higher Crude Prices
ConocoPhillips almost doubled its net profit year-on-year in the second
quarter of 2026, helped by higher realized prices for crude oil despite lower
production volumes, the company reported Thursday (8/6).
Net profit jumped 95% to $3.9 billion from $2.0 billion in the second
quarter of 2025; in the first quarter of 2026, it was $2.2 billion.
Average realized price for crude in the second quarter of this year was
$62.33 bbl, an increase of 36% from the $45.77 bbl realized a year ago.
Adjusted earnings for the profiled quarter was $4.0 billion, versus $1.8
billion from the year prior.
Quarterly production averaged 2.248 million bpd, down 143,000 bpd from
second-quarter 2025 levels due to Middle East disruptions and higher royalties.
Lower 48 operations delivered 1.479 million bpd, supported by record output
across key domestic shale basins.
Conoco reaffirmed its full-year guidance and targets third-quarter
production between 2.29 million bpd and 2.32 million bpd.
FCC Upset Triggers SO2 Release at Marathon El Paso Refinery
Marathon reported a 24-hour sulfur dioxide emission at its Fluid Catalytic
Cracker (FCC) unit at its 133,000 bpd El Paso Refinery, according to a filing
with the Texas Commission on Environmental Quality.
The incident began at 7:47 p.m. CT on Tuesday (8/4), and it ended at 7:47
p.m. CT on Wednesday (8/5).
According to the initial filing released on Wednesday, the refinery's FCC
unit experienced an upset and shut down, triggering 862.0-pounds sulfur dioxide
(SO) emissions from the South Main Flare and Tank T-4118.
"The FCC and other process units were shut down following operating
procedures", the company said.
EIA: U.S. NatGas Storage Sees 33 Bcf Weekly Injection
Energy Information Administration data released midmorning Thursday (8/6)
show a 33 billion cubic feet injection into U.S. natural gas storage to 3.117
trillion cubic feet in the week ended July 31.
Natural gas in U.S. storage is 0.4% lower than last year and 6.7% above the
five-year average of 2.922 Tcf.
Regionally, EIA reports the East registered a 24 Bcf injection to 678 Bcf, 3.5%
more than a year ago and 5.3% higher than the five-year average.
Natural gas in storage in the Midwest increased 20 Bcf week-on-week to 809 Bcf,
a 4.5% surplus compared to the same week a year ago and 7% higher than the
five-year average.
Mountain region natural gas in storage decreased 1 Bcf, down 4.4% year-on-year
to 15% above the five-year average.
South Central storage fell 6 Bcf to 1090 Bcf, 5% less than in the same week
last year and 3.6% above the five-year average.
Oxy Q2 Net Income Jumps 11-Fold Y-O-Y on Crude Price Surge
Occidental Petroleum's net income jumped 11-fold year-on-year to $3.175
billion in the second quarter of 2026, driven by a surge in realized crude
prices, the company reported.
Net income in Q2 2025 was $288 million, financial results released on
Wednesday (8/5) showed. In Q1 2026, it was $3.175 billion.
Average worldwide realized crude oil prices rose to $96.78 bbl for Q2 2026,
up from $69.91 bbl in the previous quarter and $63.76 bbl a year ago.
Domestic realized gas prices slumped to negative $1.48 per thousand cubic
feet (Mcf), down from $1.01 Mcf in the first quarter.
Midstream and marketing reported pre-tax income of $1.338 billion versus a
pre-tax loss of $87 million in the prior quarter.
Total global production averaged 1.433 million bpd, exceeding guidance as
Permian output averaged 804,000 bpd.
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