U.S. Rack ULSD Falls 19.9cts as Volatility Persists


   
   DAVENPORT, FL (DTN) -- Wholesale rack prices for ultra-low sulfur diesel 
(ULSD) across the United States plummeted Tuesday (3/17), highlighting 
continued volatility in refined product markets, as physical prices reversed 
part of Monday's rally despite ongoing geopolitical tensions in the Middle East.

   Nationwide ultra-low sulfur diesel (ULSD) rack prices averaged $3.7713 
gallon, falling 19.87cts from Monday's $3.9700 gallon, according to DTN data. 
The decline follows Monday's sharp increase, with rack markets easing even as 
broader energy markets remained supported by geopolitical risk linked to 
developments surrounding the Strait of Hormuz.

   Conventional unleaded gasoline rack prices averaged $3.0562 gallon, down 
5.32cts from Monday's $3.1094 gallon.

   ULSD racks declined across all regions. The steepest drop occurred in PADD 
2, where prices fell 29.17cts to $3.3710 gallon. PADD 1 decreased 17.10cts to 
$3.9765 gallon, while PADD 5 dropped 17.14cts to $4.4219 gallon. PADD 3 
declined 16.94cts to $3.7951 gallon, and PADD 4 posted the smallest decrease, 
down 9.77cts to $3.8177 gallon.

   Relative to the national ULSD rack average of $3.7713 gallon, PADD 5 held 
the strongest premium at 65.06cts above the U.S. benchmark, followed by PADD 1 
at 20.52cts above the national average. PADD 3 and PADD 4 also traded at slight 
premiums, while PADD 2 remained at the deepest discount, 40.03cts below the 
national average.

   On gasoline racks, most regions moved lower, though gains were seen in 
select markets. PADD 3 declined 3.88cts to $2.7560 gallon, while PADD 1 fell 
3.18cts to $2.7777 gallon. PADD 4 decreased 3.07cts to $2.9455 gallon. In 
contrast, PADD 5 increased 1.76cts to $3.7514 gallon, and PADD 2 posted a 
modest increase of 0.83cts to $2.5985 gallon.

   Compared with the national gasoline average of $3.0562 gallon, PADD 5 
remained the only region trading at a premium, at 69.52cts above the U.S. 
benchmark. All other regions held discounts, led by PADD 2 at 45.77cts below 
the national average, followed by PADD 3 at 30.02cts, PADD 1 at 27.85cts, and 
PADD 4 at 11.07cts below the benchmark.

   In the futures market, energy contracts moved higher on Tuesday morning as 
geopolitical risk continued to underpin prices. The front-month NYMEX ULSD 
April contract rose 18.02cts to $4.0177 gallon, while NYMEX RBOB gasoline for 
April increased 8.04cts to $3.0807 gallon. Meanwhile, WTI crude traded at 
$95.33 barrel, up $1.83, as market participants kept a close watch on evolving 
risks to crude and product flows through the Strait of Hormuz.




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