USWC Weekly: ULSD, Jet Fuel Up Over 2%; Gasoline Mixed


   
Daniel Rodriguez Huerta
DTN Refined Fuels Market Reporter

   CALGARY, CANADA (DTN) - Spot prices for ultra-low sulfur diesel (ULSD) and 
jet fuel rose more than 2% across most of the U.S. West Coast during the week 
ended October 23, while values for CARBOB regular fell in Los Angeles and San 
Francisco despite a third straight weekly decline in regional stockpiles.

   The divergence also came as PADD 5 refinery utilization dropped to its 
lowest levels since early August.

   ULSD in Los Angeles averaged $5.3582 gallon, rising 11.83cts, or 2.26%, from 
the previous week. Year-on-year, it was up 110.40%, DTN data showed.

   In San Francisco, ULSD edged up 4.23cts, or 0.78%, to average $5.4582 
gallon, or 114.06% above year-ago levels. Portland ULSD climbed 18.58cts, or 
3.66%, to $5.2582 gallon, up 92.60% from a year earlier.

   Weekly U.S. Energy Information Administration (EIA) data for the week ended 
October 16 showed PADD 5 distillate inventories rising by 300,000 bbl to 10.3 
million bbl. For the year though, stockpiles remained about 2.5 million bbl 
below the 12.7 million bbl reported during the comparable week of 2025. 
Distillate refinery output edged up to 422,000 bpd from 414,000 bpd, and 
imports increased to 23,000 bpd from 19,000 bpd.

   Despite the higher diesel prices, the outlook for demand appeared mixed.

   Valero Energy, on its third-quarter earnings call Thursday (10/22), said it 
sees "no indication of demand destruction," citing seven-day average U.S. 
wholesale gasoline sales up 4% and distillate sales up about 2% from a year 
earlier.

   That runs against a recent California Farm Bureau survey of more than 1,000 
farmers and ranchers that indicated three out of four people experiencing 
increased financial stress from diesel prices. Some 40% of the survey's 
respondents said they had reduced field work, and more than half said lower 
diesel prices would help keep their operations viable.

   Jet fuel followed diesel higher, with Los Angeles, San Francisco and 
Portland each rising 12.63cts, or 2.62%, to average $4.9482 gallon. Prices 
stood 88.57% above their corresponding 2025 level.

   West Coast jet fuel inventories also increased, rising by 152,000 bbl to 11 
million bbl from 10.9 million bbl. Stocks were about 1 million bbl below the 
equivalent week of the previous year. Jet fuel refinery output fell to 419,000 
bpd from 440,000 bpd, and imports declined to 76,000 bpd from 91,000 bpd.

   Gasoline prices were mixed. San Francisco CARBOB fell 16.44cts, or 4.45%, to 
$3.5310 gallon, while Los Angeles CARBOB regular slipped 11.39cts, or 3.11%, to 
average $3.5515 gallon. Prices remained 62.08% and 58.45% above their 
comparable 2025 levels, respectively. Portland suboctane gasoline moved against 
the trend, rising 5.41cts, or 1.62%, to average $3.3995 gallon, 69.88% above a 
year earlier.

   The declines in Californian gasoline prices came despite EIA data showing 
lower PADD 5 inventories for these for a third consecutive week, as stockpiles 
fell 300,000 bbl to 27.5 million bbl. Year-on-year, gasoline balances were 2 
million bbl below the 29.5 million bbl reported for the comparable week of 
2025. Gasoline refinery output dropped to 1.299 million bpd from 1.333 million 
bpd, the lowest since the week ended November 21, 2025, and imports fell to 
55,000 bpd from 96,000 bpd.

   PADD 5 refinery utilization declined to 92.0% of operable capacity from 
93.2% the previous week, the lowest since the week ended August 7.

   One flag on the data: LA ULSD on 10/15 (5.4956) and 10/16 (5.5491) sits 
above San Francisco, though it is below SF on every other day. If those two are 
typos, last week's LA average would change, and so would the 11.83cts and 2.26% 
figures.




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