MARKETWIRE ALERTS


   
Maria Eugenia Garcia
DTN Energy Editor

   MARKETWIRE ALERTS 

   MarketWire Afternoon News Oct. 1st:

   Updated at 6:00 PM ET 

    

   HEADLINES:

   -- Canada to Boost Non-U.S. Crude Exports via Pacific Pipeline

   -- U.S. Trade Rep. Greer: EU Should Release Diesel Stock

   -- EIA: U.S. Propane Exports at Record High in H1 2026

   -- EIA: US NatGas Storage Reports 64 Bcf Weekly Injection

   -- CITGO to Ship Midwest Gasoline to NY via Laurel Pipeline

    -- ULSD Racks Up 10.28cts; Gasoline Reverses 3-Session Loss

    

   NEWS

   Canada to Boost Non-U.S. Crude Exports via Pacific Pipeline

   The Canadian Prime Minister's Office on Thursday (10/1) designated the West 
Coast Oil Pipeline, or Pacific Link,  a project of national interest, aiming to 
reduce Canada's reliance on the U.S. market and potentially make nearly 1 
million bpd of crude available for export to Asia.

   Recently released Energy Information Administration data showed that the 
U.S. imported 4.15 million bpd of Canadian crude in July, accounting for 67% of 
total imports.

   Meanwhile, Canada Energy Regulator (CER)  data reported 4.49 million bpd of 
crude exported in the profiled month in July to the United States, of which the 
Midwest (PADD 2) took 2.71 million bpd, or about 60% of total exports.

   The U.S. West Coast (PADD 5) received 404,724 bpd followed by the U.S. Gulf 
Coast (PADD 3) with 403,227 bpd, the same data showed. Other destinations took 
554,110 bpd, or about 12%.

    The Canadian government listed Pacific Link under Schedule 1 of the 
Building Canada Act, granting it a special regulatory regime to expedite its 
development. 

    Canada's Major Projects Office, with help from the CER, will work to finish 
the project's regulatory review by September 1, 2027, according to a statement.

   Canada and Alberta will share equal ownership. Indigenous communities will 
be offered at least a 10% stake.

   Canadian crude exports to countries other than the U.S. have more than 
tripled since the Trans Mountain Expansion started in May 2024, according to a 
CER report last year.

   The Western Canadian Select (WCS) crude discount to West Texas Intermediate 
averaged $19.75/bbl from September 2023 to April 2024, when export pipelines 
were constrained, according to data from the provincial goverment of Alberta. 

    After the Trans Mountain Expansion, the discount averaged $13.38/bbl from 
June 2024 to August 2026, and fell to $9.95/bbl in June 2025, the lowest for 
the period. 

    The discount has widened so far this year, averaging $15.53/bbl from 
January to August. May's $18.99/bbl was the highest since March 2024. More 
export capacity from Pacific Link could narrow the discount, as the expansion 
did.

    

   U.S. Trade Rep. Greer: EU Should Release Diesel Stock

   U.S. Trade Representative Jamieson Greer on Thursday (10/1) called on 
European Union member nations to release emergency diesel fuel reserves to help 
bring down surging global fuel prices and ease critical supply deficits.

   "Europe should be releasing some of their diesel fuel reserves to help bring 
down prices," a media report quoted Greer as saying, adding that Washington 
intended to discuss stock deployments directly with EU officials during 
scheduled meetings Thursday.

   The call comes amid reports that Washington wanted EU members holding diesel 
stocks, including France and Germany, to release 120 million bbl of diesel over 
the next six months or face a potential 90-day U.S. diesel export ban.

   While reports said EU Trade Commissioner Maros Sefcovic had confirmed 
Brussels was in "high-level contact" with the Trump administration, he had 
cautioned that any U.S. export ban would have "dramatic consequences" for 
European economic performance.

   The diplomatic pressure underscores acute inventory deficits across Atlantic 
basin markets. U.S. Energy Information Administration data released Wednesday 
(9/30) showed nationwide distillate fuel oil stockpiles plunged to a record 
seasonal low of 105.2 million bbl -- down nearly 15% year-on-year -- while East 
Coast diesel and heating oil reserves trail year-ago levels by almost 29% 
heading into winter.

    

   EIA: U.S. Propane Exports at Record High in H1 2026

   U.S. propane exports surged to all-time highs in the first half of 2026, 
bolstered by expanding domestic natural gas liquids production and 
petrochemical demand from East Asia, Energy Information Administration (EIA) 
reported Thursday (10/1).

   Propane shipments surpassed 2 million bpd the first time ever in April, 
reached 2.1 million bpd, and have continued at levels well above the five-year 
average since, helped particularly by exports to India, the EIA said.

   Favorable U.S. prices for propane and increased demand for petrochemicals 
from buyers seeking to replace disrupted Middle East shipments have been 
catalysts for this, the EIA observed.

   Higher natural gas output over the past decade has also enabled more propane 
production, pushed U.S. prices lower relative to Asia and underpinning exports.

   But U.S. trade flows in propane have also shifted due to Chinese tariffs, 
the EIA observed. China imposed a 10% tariff on U.S. propane imports in 
February 2025, briefly hiking them to 125% in April 2025 before returning to 
10% in May 2025.

   Consequently, U.S. propane exports to China fell 28% in 2025 compared with 
2024 and dropped another 19% in the first half of 2026 compared with the same 
period in 2025.

   The EIA cautioned that future export growth could be constrained by terminal 
capacity limitations and ongoing Panama Canal transit restrictions. Drought 
conditions tied to El Nio have lowered canal water levels, it noted, limiting 
daily ship transits and raising effective transit costs that must be absorbed 
by buyers and sellers.

   To support rising export volumes, an expansion project by Enterprise 
expected to be completed this year at the Houston Ship Channel and Nederland 
terminals will add 300,000 bpd of export capacity, the EIA said.

   Terminal capacity is maxed out until Enterprise completes its expansion, 
while El Nino-driven drought at the Panama Canal drives up transit costs and 
forces shippers to absorb higher freight premiums to reach key Asian buyers.

    

   EIA: US NatGas Storage Reports 64 Bcf Weekly Injection

   Energy Information Administration data released midmorning Thursday (10/1) 
show a 64 billion cubic feet injection into U.S. natural gas storage to 3.415 
trillion cubic feet in the week ended September 25. Natural gas in U.S. storage 
is 3.9% lower than last year and 2.4% above the five-year average of 3.336 Tcf.

    Regionally, EIA reports the East registered a 25 Bcf injection to 840 Bcf, 
1.4% more than a year ago and 4.6% higher than the five-year average.

    Natural gas in storage in the Midwest increased 25 Bcf week-on-week to 984 
Bcf, a 1.7% surplus compared to the same week a year ago and 2.9% higher than 
the five-year average.

    Mountain region natural gas in storage increased 4 Bcf, down 7.8% 
year-on-year to 6.4% above the five-year average.

    South Central storage rose 7 Bcf to 1048 Bcf, 11.7% less than in the same 
week last year and 2.4% below the five-year average.

    

   CITGO to Ship Midwest Gasoline to NY via Laurel Pipeline

   CITGO Petroleum will ship gasoline produced at its Lemont, Illinois, 
refinery to customers in New York in early October, marking the first movement 
on Buckeye Partners' newly reversed bidirectional Laurel Pipeline service.

   The shipment will establish an additional pathway for Midwest-produced 
transportation fuels to reach East Coast markets, leveraging the Lemont 
refinery's location near major pipeline and transportation infrastructure, 
according to a CITGO statement released Wednesday (9/30).

   "This first shipment adds valuable optionality to our supply system, helping 
us move fuel where it is needed and better serve customers," Karl Schmidt, vice 
president for supply and marketing at CITGO, said in the release.

   The new route comes as New York Harbor gasoline continues to trade at a 
premium to Chicago spot prices. NYH conventional regular gasoline was assessed 
Thursday at $3.3226 gallon, 12cts above Chicago CBOB at $3.2026 gallon, DTN 
data showed. The differential also stood at 12cts Wednesday and 13.5cts Tuesday.

   East Coast gasoline inventories were nearly unchanged at 50.94 million bbl 
during the week ended September 25, according to the Energy Information 
Administration. However, Central Atlantic gasoline stocks, which include New 
York, fell 1.422 million bbl to 24.586 million bbl from 26.008 million bbl the 
previous week.

   CITGO's Lemont refinery is located southwest of Chicago. The company said 
the inaugural Laurel movement expands its ability to connect Midwest refining 
capacity with East Coast demand, providing an additional route for its 
transportation fuels to reach the region.

    

    ULSD Racks Up 10.28cts; Gasoline Reverses 3-Session Loss

   U.S. wholesale rack prices turned broadly higher Thursday (10/1) as 
ultra-low sulfur diesel (ULSD) jumped more than 10cts nationally while gasoline 
reversed three consecutive days of declines.

   Nationwide ULSD rack prices averaged $5.1411 gallon, up 10.28cts from the 
previous trading session's $5.0383 gallon, according to DTN data.

   Conventional unleaded gasoline rack prices averaged $3.4239 gallon, up 
7.63cts from Wednesday's $3.3476 gallon. The increase comes against a tight 
supply backdrop flagged by the Energy Information Administration, which 
reported that U.S. gasoline inventories fell 1.7 million bbl to 204.4 million 
bbl last week, the lowest level in nearly 12 years.

   Rack prices also firmed as oil prices advanced after Chinese refiners 
suspended October fuel exports outside Hong Kong and Macau to protect domestic 
supplies, adding another potential constraint to already tight global 
refined-product markets.

   NYMEX WTI traded near $92.19 bbl Thursday morning, up $1.79 on the day. 
Front-month New York Harbor ULSD, however, fell 5.17cts to $4.6357 gallon, 
while RBOB gasoline rose 4.12cts to $3.3017 gallon.

   Refining margins also softened despite the increase in rack prices. The 
diesel crack fell $4.01 to $102.46 bbl, while the gasoline crack edged down 
$0.09 to $46.45 bbl.

   ULSD racks increased across all five PADDs. West Coast values posted the 
largest advance, jumping 17.15cts to $5.4942 gallon, followed by Gulf Coast 
prices, which rose 12.70cts to $4.9595 gallon. Midwest ULSD increased 9cts to 
$5.1051 gallon, Rocky Mountain values rose 8.41cts to $5.4063 gallon and East 
Coast prices advanced 6.27cts to $5.0799 gallon.

   PADD 5 carried the widest ULSD premium to the national average at 35.31cts, 
while PADD 3 held the largest discount at 18.16cts.

   Gasoline racks increased in four of the five PADDs. Midwest values led the 
advance, jumping 15.44cts to $3.2058 gallon, followed by East Coast prices, 
which rose 9.31cts to $3.2596 gallon. Gulf Coast gasoline increased 8.61cts to 
$3.2580 gallon and Rocky Mountain values rose 5.92cts to $3.9159 gallon.

   West Coast gasoline bucked the national increase, falling 8.70cts to $4.1680 
gallon. The regional decline came after California moved to allow an earlier 
transition to winter-grade gasoline in an effort to increase available supply.

   PADD 5 nevertheless maintained the widest gasoline premium to the national 
average at 74.41cts, while PADD 2 held the largest discount at 21.81cts.

    

    




(c) Copyright 2026 DTN, LLC. All rights reserved.