U.S. Rack ULSD Up 1.65cts; Gasoline Falls 10.8cts


   
Miguel E. Andujar
DTN Refined Fuels Market Reporter

   DAVENPORT, FL (DTN) -- Wholesale rack prices for ultra-low sulfur diesel 
(ULSD) and gasoline moved in opposite directions Thursday (4/2), with diesel 
edging higher while gasoline declined across all regions, as futures prices 
surged on escalating geopolitical tensions tied to the Iran war.

   Nationwide ULSD rack prices averaged $4.1529 gallon, up 1.65cts from 
Wednesday's $4.1364 gallon, according to DTN data. Conventional unleaded 
gasoline rack prices averaged $3.1623 gallon, down 10.83cts from $3.2706 gallon.

   Futures prices moved sharply higher Thursday morning. Front-month May NYMEX 
ULSD futures climbed 52.00cts to $4.5768 gallon, while May RBOB gasoline 
futures increased 18.40cts to $3.2754 gallon. WTI crude for May delivery surged 
$12.28 to $112.40 bbl.

   The rally in futures followed renewed escalation signals in the Middle East 
conflict, after U.S. President Donald Trump said strikes on Iran would 
intensify over the next two to three weeks and indicated the U.S. would not 
take steps to reopen the Strait of Hormuz. The comments reinforced supply 
concerns tied to the region, where flows remain heavily constrained.

   Despite the sharp move higher in futures, rack price direction remained 
mixed, reflecting uneven physical market response following recent volatility.

   ULSD racks were mixed across regions Thursday. Midwest ULSD posted the only 
notable increase, rising 15.69cts to $3.8380 gallon, while East Coast prices 
declined 5.70cts to $4.2526 gallon. Gulf Coast values fell 5.12cts to $4.1739 
gallon, and West Coast prices dropped 8.99cts to $5.3524 gallon, maintaining 
the strongest regional premium. PADD 4 edged slightly lower by 0.45cts to 
$3.9217 gallon.

   Relative to the national ULSD rack average of $4.1529 gallon, PADD 5 held 
the widest premium at $1.1995 above the U.S. benchmark, followed by PADD 1 at 
9.97cts above and PADD 3 at 2.10cts above. PADD 4 traded below the national 
average, while PADD 2 remained the deepest discount at 31.49cts below the 
benchmark.

   On conventional unleaded gasoline racks, all regions moved lower Thursday. 
Gulf Coast gasoline recorded the largest decline, falling 11.27cts to $2.9685 
gallon, while West Coast prices dropped 11.10cts to $3.8404 gallon. East Coast 
values declined 10.58cts to $2.9986 gallon, Midwest gasoline fell 9.12cts to 
$2.6067 gallon, and PADD 4 decreased 8.63cts to $2.9026 gallon.

   Compared with the national gasoline average of $3.1623 gallon, PADD 5 
remained the only region trading at a premium, at 67.81cts above the benchmark. 
All other regions held discounts, led by PADD 2 at 55.56cts below the national 
average, followed by PADD 4 at 25.97cts, PADD 3 at 19.38cts, and PADD 1 at 
16.37cts.

   Premium gasoline rack prices declined across all regions, broadly in line 
with conventional gasoline. Midwest prices posted the largest drop, down 
11.77cts to $3.2164 gallon, while West Coast premiums remained elevated at 
$4.2335 gallon despite a 11.08cts decline.

   The sharp move higher in futures alongside weaker gasoline rack prices 
reflects a disconnect between paper and physical markets, with futures reacting 
quickly to renewed supply risk while rack values remain driven by near-term 
buying patterns and regional supply conditions.




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