U.S. Rack ULSD Up 7.7cts; Gasoline Edges Higher


   
   DAVENPORT, FL (DTN) -- Wholesale rack prices for ultra-low sulfur diesel 
(ULSD) and gasoline moved higher Thursday (4/16), following Wednesday's 
decline, as physical markets firmed alongside a modest recovery in futures and 
tighter supply signals from the latest inventory data.

   Nationwide ULSD rack prices averaged $3.9185 gallon, up 7.7cts from 
Wednesday's $3.8415 gallon, according to DTN data. Conventional unleaded 
gasoline rack prices averaged $3.2459 gallon, up 1.34cts from $3.2325 gallon.

   Futures' prices moved slightly higher on Thursday morning. Front-month May 
NYMEX ULSD futures increased 4.68cts to $3.8000 gallon, while May RBOB gasoline 
futures rose 1.69cts to $3.0861 gallon. WTI crude for May delivery added $0.35 
to $91.64 bbl.

   The firmer tone in futures comes as flows through the Strait of Hormuz 
remain limited, even as markets continue to weigh the possibility of renewed 
U.S.-Iran negotiations later this week. The combination has kept a floor under 
prices, with supply still constrained despite the recent shift toward diplomacy.

   Support in physical markets was also reinforced by the latest U.S. Energy 
Information Administration data released Wednesday (4/15), which showed a 
sizable draw in both gasoline and distillate inventories. Gasoline stocks fell 
by 6.4 million bbl, while distillate inventories declined by 3.1 million bbl, 
extending recent tightening trends and pointing to continued strength in 
refined product demand.

   ULSD racks increased across all regions Thursday, with the largest move on 
the West Coast. PADD 5 ULSD rose 11.62cts to $4.7473 gallon, maintaining the 
strongest regional premium. East Coast prices increased 8.62cts to $3.9044 
gallon, while Gulf Coast values climbed 7.95cts to $3.8651 gallon. Midwest ULSD 
rose 6.97cts to $3.7397 gallon, and Rocky Mountain prices increased 3.24cts to 
$4.2148 gallon.

   Relative to the national ULSD rack average of $3.9185 gallon, PADD 5 held 
the widest premium at 82.88cts above the U.S. benchmark, followed by PADD 4 at 
29.63cts above. PADD 1 traded near parity with the national average, while PADD 
2 remained the deepest discount at 17.88cts below the benchmark, followed by 
PADD 3 at 5.34cts below.

   On conventional unleaded gasoline racks, all regions moved higher Thursday, 
though increases were more measured compared to diesel. West Coast gasoline 
posted the largest increase, rising 4.54cts to $3.9223 gallon, maintaining the 
only premium position. East Coast prices increased from 2.06cts to $2.9241 
gallon, while Midwest values rose 1.77cts to $2.7386 gallon. Gulf Coast 
gasoline edged up 0.71cts to $2.9053 gallon, and Rocky Mountain prices were 
nearly flat, up 0.26cts to $3.1935 gallon.

   Compared with the national gasoline average of $3.2459 gallon, PADD 5 
remained the only region trading at a premium, at 67.64cts above the benchmark. 
All other regions held discounts, led by PADD 2 at 50.73cts below the national 
average, followed by PADD 1 at 32.18cts and PADD 3 at 34.06cts. PADD 4 traded 
just slightly below the national benchmark.

   Premium gasoline rack prices also moved higher across all regions, broadly 
in line with conventional gasoline, with West Coast values remaining elevated 
at $4.3094 gallon.

   The price action points to a market that, despite headline-driven swings, is 
still anchored by tight near-term fundamentals. Inventory draws and steady 
export flows are keeping pressure on available barrels, particularly in 
distillates, while the forward curve continues to signal urgency in the prompt 
market.

   With ULSD backwardation holding above 21cts and RBOB above 6cts, the 
structure suggests that immediate supply remains the key constraint, even as 
broader sentiment shifts with each geopolitical update.




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