MARKETWIRE ALERTS
Barani Krishnan
DTN Refined Fuels Market Reporter
MARKETWIRE ALERTS
MarketWire Afternoon News Aug 19th:
Updated at 5:00 PM ET
HEADLINES:
- Midwest Fuels Basis Hit by Explorer Restart Uncertainty
- CEC Approves $95M Plan to Expand ZEV Infrastructure
- API Updates Pipeline Crack Management Standard
- ATA: Truck Tonnage in June Unchanged from May
- Marathon Galveston Bay Reports Emission After Unit Upset
- CITGO Corpus Christi Shuts No. 2 FCCU for Maintenance
- BTS: N. American June Transborder Freight Up 19.9% on Yr
- EIA: PADD 3 Crude Stocks Rise for 2nd Straight Week
- EIA: PADD 1 Gasoline Stocks Near 8-Month Low
- EIA: PADD 5 Crude, Gasoline Stocks DN; Distillates, Jet Up
- EIA: PADD 2 Gasoline, Jet Stocks Up; Distillates Down
- EIA: Ethanol Inventories 0.4% Down on Year
- EIA: Propane/Propylene Stocks Rise 17.3% on Year
- EIA: SPR Stocks Near 44-Year Low; Crude Stocks Rise
- API: Crude Stocks Reverse to 328,000 Bbl Draw
NEWS
CEC Approves $95M Plan to Expand ZEV Infrastructure
The California Energy Commission approved a $95.2 million investment plan to
accelerate the build-out of zero-emission vehicle infrastructure across the
state.
The annual Clean Transportation Program Investment Plan allocates funding
across four key areas: $48 million for light-duty EV charging, $30.2 million
for medium- and heavy-duty ZEV infrastructure, $15 million for hydrogen
refueling stations, and $2 million for workforce training and development, the
CEC stated.
At least 50% of program funds must benefit low-income Californians and
disadvantaged communities. As of March 2026, more than 62% of program funds
have already reached those communities, the CEC said.
Since 2008, the Clean Transportation Program has invested more than $2.7
billion in ZEV infrastructure, installing or planning more than 52,000 charging
ports statewide. California currently boasts 216,445 publicly available and
shared EV charging ports, having surpassed 20,000 DC fast chargers earlier this
year.
API Updates Pipeline Crack Management Standard
The American Petroleum Institute said it has issued a revised edition of a
publication that provides pipeline operators with a standard for managing
crack-related threats and mitigating pipeline failure risks.
The Recommended Practice 1176 now contains updated guidance for hazardous
liquid and natural gas transmission operators, the API said in statement
Wednesday (8/18), adding that a decade of operational data, technological
advances and research have been incorporated to better characterize and
prioritize crack repairs.
The updated framework to the original 2016 publication also emphasizes
risk-informed decision-making, improved integration of in-line inspection data
and enhanced mitigation strategies for threats, including stress corrosion
cracking and electric resistance welding seam issues.
ATA: Truck Tonnage in June Unchanged from May
American Trucking Associations' advanced seasonally adjusted For-Hire Truck
Tonnage Index increased 0.1% to 113.1 in June after decreasing 3.2% in May,
which was revised up slightly.
"While tonnage was little changed during June, there was a definite
weakening in volumes during the second quarter as the index contracted a total
of 4.1% during April and May," said ATA Chief Economist Bob Costello.
"After five straight year-over-year gains, tonnage has now contracted from
year-earlier levels for the last two months. While the U.S. economy remains on
solid footing overall, the freight economy isn't as strong. With that said, the
decrease in capacity over the last year probably has fleets feeling a little
better than volumes would suggest."
The not seasonally adjusted index, which represents the change in tonnage
actually hauled by fleets before any seasonal adjustment, equaled 116.5 in
June, above May's reading of 113.4.
ATA's For-Hire Truck Tonnage Index is dominated by contract freight as
opposed to spot market freight.
Trucking serves as a barometer of the U.S. economy, representing 72.7% of
tonnage carried by all modes of domestic freight transportation, including
manufactured and retail goods. Trucks hauled 11.27 billion tons of freight in
2024. Motor carriers collected $906 billion, or 76.9% of total revenue earned
by all transport modes. ATA calculates the tonnage index based on surveys from
its membership and has been doing so since the 1970s.
Marathon Galveston Bay Reports Emission After Unit Upset
Marathon Petroleum's 631,000 bpd Galveston Bay refinery experienced sulfur
dioxide emissions exceeding a reportable quantity after a unit upset at the
facility, a filing with the Texas Commission on Environmental Quality showed.
The event occurred Tuesday (8/18) between 2:30 a.m. and 8:30 a.m. CT at the
largest U.S. refinery, located in Texas City, Texas, according to the filing.
It described the event as involving the refinery's #5 Topper Heater and Alky
Heater components that support primary distillation and alkylation processes.
Estimated sulfur dioxide emissions from the incident totaled 1,613 pounds,
the filing said, adding that operators stabilized the affected heaters and
resumed operations following the event.
The Galveston Bay refinery primarily produces gasoline, diesel and jet fuel.
DTN reached out to Marathon Petroleum for additional details but did not get
an immediate response.
CITGO Corpus Christi Shuts No. 2 FCCU for Maintenance
CITGO reported a shutdown of the No. 2 fluid catalytic cracking unit (FCCU)
at its Corpus Christi East Plant in Texas to complete maintenance, according to
a filing with the Texas Commission on Environmental Quality.
The unit was shut down in a controlled manner Monday (8/17) at 11:23 p.m. CT
to complete maintenance on the Depentanizer Overhead Condenser line. The event
ended Tuesday (8/18) at 1:06 a.m. CT, the filing said.
The shutdown resulted in elevated carbon monoxide emissions and excess
opacity at the FCCU regenerator. Estimated carbon monoxide emissions totaled
5,001 pounds, while opacity reached 71%, above the 20% limit listed in the
filing.
According to the filing, operators followed FCCU shutdown procedures, which
required the electrostatic precipitators to be turned off as part of the safety
shutdown logic, resulting in excess opacity. FCC units convert heavier refinery
streams into gasoline blendstocks and other lighter products, making them a key
component of refinery gasoline production.
The Corpus Christi refinery primarily produces gasoline, diesel and jet fuel.
DTN reached out to CITGO for additional details but did not get an immediate
response.
BTS: N. American June Transborder Freight Up 19.9% on Yr
North American transborder freight moved by all modes of transportation
surged 19.9% in June compared to the same month last year, the U.S. Bureau of
Transportation Statistics reported Wednesday (8/19).
Total freight value for June reached $157.1 billion, BTS' records showed.
The broad-based June increase was driven by solid gains across all transport
modes, led by double-digit jumps in pipeline, air, truck, and rail shipments.
Transborder freight between the U.S. and Canada rose 17% to $67.9 billion,
while trade flows between the U.S. and Mexico expanded 22.2% to $89.2 billion.
Trucks carried $104.4 billion worth of freight in June, up 23% from a year
ago, while pipeline freight surged 38.9% to $11 billion during the same period.
Air freight value rose 24.2% to $6.2 billion compared to last year, while
rail shipments increased 11.0% to $17.1 billion and vessel freight ticked up
4.0% to $10.4 billion.
EIA: PADD 3 Crude Stocks Rise for 2nd Straight Week
U.S. Gulf Coast (PADD 3) crude oil inventories increased for a second
consecutive week during the week ended August 14, following the largest weekly
build since January 2023 the previous week. Gasoline stocks also increased,
while distillate fuel and jet fuel inventories declined, according to the U.S.
Energy Information Administration's Weekly Petroleum Status Report released
Wednesday (8/19).
Crude oil inventories in PADD 3 increased by 8.4 million bbl to 253.6
million bbl during the reference week, following a 14.6 million bbl build the
previous week. Inventories were 12.7 million bbl above the 240.9 million bbl
reported during the same week last year. Crude oil imports into the Gulf Coast
averaged 1.583 million bpd, down from 1.879 million bpd the previous week but
above the 944,000 bpd reported during the comparable week of 2025.
Motor gasoline inventories in the PADD 3 region increased by 2.2 million bbl
to 79.5 million bbl during the reference week, reversing the previous week's
decline. Inventories remained 3.5 million bbl below the 83 million bbl reported
during the same week last year. Gasoline imports into the Gulf Coast averaged
72,000 bpd, up from 58,000 bpd the previous week and above the 53,000 bpd
reported during the comparable week of 2025.
Distillate fuel oil inventories, the feedstock for diesel, fell by 1.1
million bbl to 39.9 million bbl during the profiled week and were 4.8 million
bbl below the 44.7 million bbl reported during the same week last year. As a
net exporter of distillate fuel, PADD 3 reported no distillate imports during
the reporting week.
Jet fuel inventories fell by 300,000 bbl to 14.8 million bbl during the
reference week but remained 1.1 million bbl above the 13.7 million bbl reported
during the same week last year. The Gulf Coast reported no jet fuel imports
during the reporting week.
Refinery utilization on the Gulf Coast was unchanged at 97.9% of operable
capacity, while crude oil inputs into refineries averaged 9.619 million bpd, up
from 9.588 million bpd the week before, EIA data showed.
EIA: PADD 1 Gasoline Stocks Near 8-Month Low
U.S. East Coast (PADD 1) gasoline inventories declined during the week ended
August 14 to their second-lowest level since December 2025, while distillate
fuel and jet fuel inventories increased. Crude oil stocks edged down, according
to the U.S. Energy Information Administration's Weekly Petroleum Status Report
released Wednesday (8/19).
Motor gasoline inventories in PADD 1 fell by 200,000 bbl to 52.4 million bbl
during the reference week, the second-lowest level since the week ended
December 12, 2025, when stocks stood at 51.9 million bbl. The only lower level
since then was 52.2 million bbl during the week ended July 31. Inventories
remained 4.5 million bbl below the 56.9 million bbl recorded during the same
week last year. Gasoline imports into the region fell to 242,000 bpd from
458,000 bpd the previous week and were below the 578,000 bpd reported during
the comparable week of 2025.
Distillate inventories on the East Coast, the primary storage region for
heating oil and diesel, increased by 1.3 million bbl to 25.2 million bbl during
the profiled week but remained 3.4 million bbl below the 28.6 million bbl
reported during the same week last year. East Coast distillate imports
increased to 75,000 bpd from 66,000 bpd the previous week but remained below
the 95,000 bpd imported during the comparable week of 2025.
Jet fuel inventories increased by 500,000 bbl to 11.5 million bbl during the
reference week and were 500,000 bbl above the 11 million bbl reported during
the comparable week in 2025. East Coast jet fuel imports averaged 16,000 bpd,
up from 13,000 bpd the previous week but below the 25,000 bpd imported during
the comparable week of 2025.
Crude oil inventories on the East Coast edged down by 100,000 bbl to 7.8
million bbl during the week profiled and were 700,000 bbl below the 8.5 million
bbl reported during the same week last year. Crude imports into the region
averaged 472,000 bpd, down from 515,000 bpd the previous week and below the
832,000 bpd reported during the comparable week of 2025.
Refinery utilization on the East Coast increased to 84.8% of operable
capacity from 83.7% the previous week, while crude oil inputs increased by
9,000 bpd to 784,000 bpd, EIA data showed.
EIA: PADD 5 Crude, Gasoline Stocks DN; Distillates, Jet Up
West Coast crude and gasoline inventories fell while distillate and jet fuel
stockpiles rose during the week ended August 14, the U.S. Energy Information
Administration (EIA) reported Wednesday (8/19).
Motor gasoline stocks in the PADD 5 region dropped by 1.4 million bbl to
28.1 million bbl during the referenced week, the EIA's Weekly Petroleum Status
Report showed. Year-on-year, gasoline stocks declined by 3.1 million bbl from
the 31.2 million bbl reported during the corresponding week of 2025.
PADD 5 gasoline imports fell by 1,400 bpd to 28,100 bpd last week, remaining
3,100 bpd lower compared with 31,200 bpd recorded a year earlier.
Regional distillate fuel stockpiles rose by 800,000 bbl to 11 million bbl,
standing 500,000 bbl below 11.5 million bbl logged last year. Distillate
imports in the same region rose by 800 bpd to 11,000 bpd on the week, though
they were down 500 bpd from 11,500 bpd imported a year ago.
Jet fuel stocks in PADD 5 grew by 200,000 bbl to 10.8 million bbl, falling
600,000 bbl below the previous year's level of 11.4 million bbl. Jet fuel
imports in PADD 5 increased by 200 bpd on the week to 10,800 bpd, standing 600
bpd below 11,400 bpd imported during the same week last year.
Crude oil inventories in PADD 5 decreased by 2.2 million bbl to 44.4 million
bbl during the profiled week. Regional crude stocks were 300,000 bbl below 44.7
million bbl reported for the same week last year. Crude imports fell by 2,200
bpd on the week to average 44,400 bpd, down 300 bpd from 44,700 bpd a year
earlier.
PADD 5 refiner crude inputs increased by 50,000 bpd on the week to 2.041
million bpd, down 190,000 bpd compared with 2.231 million bpd a year ago.
Regional refinery utilization rose 1.7 percentage points to 92.2%, standing
2.0 percentage points above the 90.2% rate recorded last year.
EIA: PADD 2 Gasoline, Jet Stocks Up; Distillates Down
Midwest gasoline and jet fuel inventories increased during the week ended
August 14, while distillate and crude oil stockpiles drew, the Energy
Information Administration (EIA) reported Wednesday (8/19).
Motor gasoline inventories in the PADD 2 region built by 100,000 bbl during
the referenced week to stand at 43.1 million bbl, according to the EIA's Weekly
Petroleum Status Report. Year-on-year, Midwest gasoline stocks fell by 2.6
million bbl from the 45.7 million bbl recorded during the corresponding week of
2025.
Weekly imports of gasoline into the Midwest fell by 2,000 bpd on the week to
average 22,000 bpd during the current reporting period. This inbound volume was
up by 9,000 bpd from the year-ago level of 13,000 bpd recorded during the same
week last year.
PADD 2 distillate fuel oil inventories fell by 200,000 bbl on the week to
28.4 million bbl. That weekly draw placed regional distillate inventories
500,000 bbl higher than the 27.9 million bbl logged during the corresponding
week last year.
Distillate imports into the Midwest averaged 16,000 bpd, up 12,000 bpd on
the week but down by 5,000 bpd from the year-ago volume of 21,000 bpd.
Jet fuel stocks rose by 300,000 bbl from the prior week to 8.0 million bbl,
standing 500,000 bbl above the previous year's level of 7.5 million bbl. Weekly
jet fuel imports into the region remained flat at zero bpd, matching both
week-ago and year-ago levels.
Crude oil inventories decreased by 1.5 million bbl on the week to 100.4
million bbl, which is 3.7 million bbl lower than last year's level of 104.1
million bbl.
Crude imports into the PADD 2 region decreased by 471,000 bpd on the week to
average 2,665,000 bpd, according to latest EIA data. This inbound crude oil
volume was 353,000 bpd lower than the 3,018,000 bpd reported by the agency
during the corresponding week last year.
Refiner use of crude in the Midwest stood at 4.329 million bpd last week,
versus 4.210 million the week prior and 4.276 million a year ago. The regional
utilization rate rose to 101.2% versus the prior week's 98.6% and surpassed the
year-ago level of 100.8%.
EIA: Ethanol Inventories 0.4% Down on Year
The Energy Information Administration reported on Wednesday (8/19) that
overall ethanol production in the United States averaged 1.089 million bpd in
the week ending August 14, down 28,000 bpd week-on-week and 4,000 bpd, or 0.4%
lower than in the same week last year.
Four-week average output at 1.127 million bpd was 23,000 bpd above the same
four weeks last year.
Midwest ethanol production averaged 1.031 million bpd, down 29,000 bpd
week-on-week and 1,000 bpd, or 0.1% lower than in the same week last year.
Four-week average output at 1.07 million bpd was 24,000 bpd above the same four
weeks last year.
Ethanol blending activity in the U.S. averaged 926,000 bpd, up 11,000 bpd
week-on-week and 25,000 bpd, or 2.8% higher than in the same week last year.
Four-week average blending demand at 853,000 bpd was 6,000 bpd above the same
four weeks last year.
Blender inputs at the East Coast were up 15,000 bpd on the week while inputs
in the Midwest were down 2,000 bpd, up 1,000 bpd on the Gulf Coast and down
1,000 bpd on the West Coast.
Domestic ethanol inventories ended the week at 25.121 million bbl, up 323,000
bbl week-on-week and 1.193 million bbl, or 5% higher than in the same week last
year.
East Coast PADD 1 inventories ended the week at 7.394 million bbl, up
124,000 bbl week-on-week and 936,000 bbl, or 14.5% higher than in the same week
last year.
Midwest PADD 2 inventories ended the week at 9.746 million bbl, up 19,000
bbl week-on-week and 281,000 bbl, or 2.8% lower than in the same week last year.
Gulf Coast PADD 3 inventories ended the week at 5.276 million bbl, up
195,000 bbl week-on-week and 266,000 bbl, or 5.3% higher than in the same week
last year.
West Coast PADD 5 inventories ended the week at 2.368 million bbl, down
19,000 bbl week-on-week and 262,000 bbl, or 12.4% higher than in the same week
last year.
EIA: Propane/Propylene Stocks Rise 17.3% on Year
The Energy Information Administration reported on Wednesday (8/19) total
domestic propane/propylene stocks of 107.013 million bbl in the week ending
August 14, up 2.039 million bbl week-on-week and 15.771 million bbl, or 17.3%
higher than in the same week last year.
Data show propane/propylene exports last week averaged 2.041 million bpd, up
59,000 bpd week-on-week and 322,000 bpd, or 18.7%, higher than in the same week
last year.
Implied demand for propane/propylene in the United States averaged 684,000
bpd, down 63,000 bpd week-on-week and 140,000 bpd, or 17% lower than in the
same week last year.
EIA reports domestic propane/propylene production averaged 2.911 million bpd,
up 16,000 bpd week-on-week and 60,000 bpd, or 2.1% higher than in the same week
last year.
East Coast PADD 1 inventories ended the week at 8.289 million bbl, up 183,000
bbl week-on-week and 68,000 bbl, or 0.8% lower than in the same week last year.
Midwest PADD 2 inventories ended the week at 26.154 million bbl, up 1.148
million bbl week-on-week and 2.211 million bbl, or 9.2% higher than in the same
week last year.
Gulf Coast PADD 3 inventories ended the week at 67.819 million bbl, up 876,000
bbl week-on-week and 13.661 million bbl, or 25.2% higher than in the same week
last year.
Combined inventories in the Rockies and the West Coast, PADD 4 and 5, ended the
week at 4.752 million bbl, down 166,000 bbl week-on-week and 32,000 bbl, or
0.7% lower than in the same week last year.
EIA: SPR Stocks Near 44-Year Low; Crude Stocks Rise
U.S. commercial crude oil inventories increased during the week ended August
14, while Strategic Petroleum Reserve stocks fell to their lowest level since
December 1982, according to Energy Information Administration data released
Wednesday (8/19). Gasoline and jet fuel inventories increased, while distillate
fuel stocks declined.
Strategic Petroleum Reserve inventories fell by 5.3 million bbl to 293.4
million bbl during the reference week, the lowest level since the week ended
December 24, 1982, when stocks stood at 293.2 million bbl. The current
inventory represents about 41.1% of the reserve's total 714 million bbl storage
capacity. SPR inventories were 110 million bbl, or 27.3%, below the same week
last year, EIA data showed.
Commercial crude oil inventories increased by 4.4 million bbl to 428.8
million bbl during the profiled week and were 8.1 million bbl, or 1.9%, above
the same week last year. Crude oil imports averaged 6.593 million bpd in the
profiled week, down by 746,000 bpd from the previous week. Over the last four
weeks, crude imports averaged 6.453 million bpd, up 1.2% from the same period
last year. Crude oil exports averaged 4.066 million bpd last week, up from
3.058 million bpd the previous week but below the 4.372 million bpd reported
during the comparable week last year.
Total motor gasoline inventories increased by 700,000 bbl to 209.4 million
bbl during the week profiled but remained 14.2 million bbl, or 6.3%, below the
same week last year. Gasoline imports averaged 612,000 bpd compared with
583,000 bpd the previous week and 665,000 bpd during the comparable week last
year. Gasoline exports averaged 852,000 bpd, unchanged from the previous week
but below the 1.019 million bpd reported during the comparable week last year.
Distillate fuel inventories fell by 1.5 million bbl to 105.6 million bbl
during the reference week and were 10.4 million bbl, or 9%, below the same week
last year. Distillate imports averaged 93,000 bpd compared with 111,000 bpd the
previous week and 126,000 bpd during the comparable week last year. Distillate
exports averaged 1.601 million bpd versus 1.935 million bpd the previous week
and 1.152 million bpd during the comparable week last year.
Jet fuel inventories increased by 1.1 million bbl to 46.2 million bbl last
week and were 2.9 million bbl, or 6.8%, above the same week last year. Jet fuel
imports averaged 155,000 bpd compared with 133,000 bpd the previous week and
106,000 bpd during the comparable week last year. Jet fuel exports averaged
372,000 bpd versus 443,000 bpd the previous week and 217,000 bpd during the
comparable week last year.
Refinery utilization increased to 97.2% of operable capacity last week from
96.2% the previous week. Crude oil inputs into refineries averaged 17.395
million bpd, up by 216,000 bpd from the previous week's 17.179 million bpd, EIA
data showed.
API: Crude Stocks Reverse to 328,000 Bbl Draw
U.S. commercial crude oil stocks fell by 328,000 bbl during the week ended
August 14, reversing the 9.072 million bbl build recorded the previous week,
the American Petroleum Institute (API) reported on Tuesday (8/18).
API reported a stockpile decline of 1.438 million bbl at the Cushing,
Oklahoma, delivery point for NYMEX West Texas Intermediate futures, reversing
the 1.571 million bbl build reported in the prior week.
Gasoline inventories increased by 1.076 million bbl, reversing the 1.531
million bbl draw recorded in the previous week.
Distillate fuel oil inventories declined by 2.797 million bbl, above the
596,000 bbl draw reported the prior week.
Midwest Fuels Basis Hit by Explorer Restart Uncertainty
Midwest fuel prices fell broadly Wednesday (8/19) as market participants
remained in the dark over the timeline for the resumption of Explorer
Pipeline's fire-damaged farm tanks, allowing futures markets to dictate play.
Lack of operational clarity left physical traders hesitant to push
differentials higher despite underlying supply uncertainty following Monday's
fire that damaged three tanks at Explorer's Glenpool facility in Oklahoma.
In Chicago cash trading Wednesday, the basis for ultra-low sulfur diesel
(ULSD) was heard traded at a 21cts discount to September NYMEX ULSD, widening
by 6cts.
The ULSD basis for the Buckeye Complex and Wolverine pipelines rose 3cts
each to trade at a 18cts discount to September NYMEX ULSD futures contract.
In gasoline, CBOB basis at Chicago, Buckey and Wolverine widened 4cts each
to a discount of 7cts versus the NYMEX RBOB futures contract for September
delivery.
The NYMEX ULSD for September delivery climbed 2.2cts to close at $4.4523
gallon on Wednesday. NYMEX RBOB for September dropped 4.66cts, to settle at
$3.2551 gallon.
Fuel traders reported growing discontent over the inability to price the
potential supply tightness resulting from the outage to the 1,830-mile Explorer
Pipeline system, which transports refined petroleum products northward from the
Gulf Coast into the Midwest.
"The market is receiving zero concrete information or news out of Explorer
Pipeline or Glenpool," a Midwest fuels trader told DTN. "While an operational
impact is inevitable, nobody knows what the scope or duration of that impact
will be yet."
Without clear guidance on when product flows will resume northward from PADD
3 into PADD 2, market participants said they were leaving cash basis unanchored
and allowing underlying NYMEX futures movements to drive prompt valuations.
In an email to DTN Wednesday, a spokesperson reiterated Explorer Pipeline's
comments from Tuesday that "the timeline of resuming full operations north and
south of the facility is under review." It stated previously that local
operations in Oklahoma have been paused to focus on "on-site reclamation and
remediation process".
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