U.S. Rack ULSD Tops $5; Gasoline Falls 5.71cts


   
Miguel E. Andujar
DTN Refined Fuels Market Reporter

   DAVENPORT, FL (DTN) -- U.S. wholesale ultra-low sulfur diesel (ULSD) rack 
prices surged above $5 gallon Thursday (9/10), rising across all five PADDs, as 
futures of crude hit their highest since April while those of diesel rallied to 
new Iran war highs amid mounting Middle East supply concerns. Gasoline racks, 
meanwhile, fell across all regions.

   Nationwide ULSD rack prices averaged $5.1556 gallon, up 17.90cts from the 
previous day's $4.9767 gallon. The average was 74.98cts, or 17.0%, above the 
August average of $4.4058 gallon and $2.5700, or 99.4%, above the $2.5856 
gallon average from the previous year, according to DTN data.

   Conventional unleaded gasoline rack prices averaged $3.3418 gallon, down 
5.71cts from $3.3989 gallon Wednesday. Thursday's average remained 25.60cts, or 
8.3%, above August's $3.0858 gallon average and $1.0717, or 47.2%, above the 
$2.2701 gallon average from the previous year.

   The sharp rise in diesel racks came as crude and product futures extended 
their rally Thursday following another round of attacks on oil tankers near the 
Strait of Hormuz, adding to concerns that the Middle East supply disruption 
could persist longer than previously expected.

   WTI climbed above $100 bbl Thursday morning, reaching its highest level 
since April, when it peaked above $117. Front-month NYMEX ULSD, meanwhile, 
traded above $4.96 gallon, up more than 16cts on the day. New York Harbor 
heating oil backwardation widened to about 20cts, reflecting continued strength 
in prompt diesel supply.

   The futures strength flowed directly into regional ULSD racks. West Coast 
values posted the largest increase, rising 22.37cts to $5.8037 gallon, followed 
by Gulf Coast prices, which jumped 22.12cts to $4.9991 gallon. Midwest ULSD 
increased 20.85cts to $5.1114 gallon, Rocky Mountain values rose 17.82cts to 
$5.2416 gallon and East Coast prices advanced 10.08cts to $4.9591 gallon.

   Relative to the national ULSD average of $5.1556 gallon, PADD 5 maintained 
the widest premium at 64.81cts, followed by PADD 4 at 8.60cts. PADD 1 traded 
19.65cts below the national benchmark, PADD 3 held a 15.65cts discount and PADD 
2 stood 4.42cts below the U.S. average.

   Gasoline racks went in the opposite direction, falling across all five 
regions despite a rebound in futures. Midwest gasoline recorded the largest 
decline, falling 7.63cts to $3.1205 gallon, while East Coast values dropped 
6.24cts to $3.1739 gallon and Gulf Coast gasoline fell 5.71cts to $3.1763 
gallon. West Coast prices declined 2.64cts to $4.0875 gallon and Rocky Mountain 
values fell 2.62cts to $3.8645 gallon.

   RBOB futures were up about 10cts Thursday morning to trade above $3.31 
gallon. The front of the gasoline curve remained strongly backwardated at about 
17cts, widening roughly 2cts on the day.

   Compared with the national gasoline average of $3.3418 gallon, PADD 5 
maintained the largest premium at 74.57cts, followed by PADD 4 at 52.27cts. 
PADD 2 held the widest discount at 22.13cts, while PADD 1 and PADD 3 traded 
16.79cts and 16.55cts below the national average, respectively.

   The latest rack moves widened the split between diesel and gasoline markets, 
with ULSD replacement costs responding sharply to higher futures and persistent 
concerns over global middle-distillate supply. EIA on Wednesday raised its 2026 
retail diesel price forecast to $5.07 gallon from $4.85 gallon and expects U.S. 
distillate inventories to fall below 100 million bbl in September, remaining 
below the five-year average low through 2027.

    




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