MARKETWIRE ALERTS
Barani Krishnan
DTN Refined Fuels Market Reporter
MARKETWIRE ALERTS
MarketWire Afternoon News Sept 29:
Updated at 5:00 PM ET
HEADLINES:
-- Chicago ULSD Basis Up 6.5cts, Rallying with Futures
-- API: Crude Stocks Rise by 1.019M Bbl
-- Chicago CBOB Basis Down 7cts as Gasoline Futures Tumble
-- USGC Jet Basis Drops 7cts After Five-Month High
-- U.S. Job Openings Little Changed at 7.1 Million in August
-- EIA: U.S. Retail Diesel Drops 14.7cts to $6.382
-- EIA: U.S. Gasoline Edges Down 1.3cts After 3-Week Rise
-- ULSD Racks Rebound as Gasoline Weakness Persists
NEWS
Chicago ULSD Basis Up 6.5cts, Rallying with Futures
Midwest ULSD spot basis widened 6.5cts on Tuesday (9/29) tracking a rally in
futures contract, amid ample supply and firm demand fundamentals.
Chicago ULSD basis was assessed at a 5cts gallon premium above the October
NYMEX ULSD contract, reversing from Monday's 1.5cts gallon discount.
Buckeye Complex and Wolverine ULSD basis both were assessed at an 8cts
gallon premium to October futures contract.
In contrast, Group 3 ULSD basis plunged 16cts on the day to a15cts gallon
discount to the same benchmark, shifting from a 1 cent premium reported the
prior trading session.
Aviation fuels showed mixed performance across the complex. Group 3 jet fuel
basis narrowed its discount by 6cts to a 44cts gallon discount to the
front-month NYMEX ULSD futures contract, while Chicago jet fuel basis held flat
at a 40cts gallon discount.
Physical distillate gains were underpinned by strong underlying futures
support. NYMEX October ULSD futures climbed $0.1426, or 3.00%, to settle at
$4.8979 gallon, after reaching a session high of $4.9150 gallon.
The physical basis firming comes against a backdrop of tightening regional
supply. Energy Information Administration data showed PADD 2 distillate fuel
oil inventories dropped by 1.6 million bbl to 27.2 million bbl for the week
ended September 18, reaching their lowest level since mid-June.
The sharp draw coincided with a drop in regional refining activity, as
Midwest refiner crude utilization plunged 11 percentage points on the week to
89%, with crude inputs falling 439,000 bpd to average 3.802 million bpd.
API: Crude Stocks Rise by 1.019M Bbl
U.S. commercial crude oil inventories increased by 1.019 million bbl during
the week ended September 25, while refined products showed mixed results, the
American Petroleum Institute (API) reported on Tuesday (9/29).
API also reported a crude inventory build of 233,000 bbl at the Cushing,
Oklahoma, delivery point for NYMEX West Texas Intermediate futures.
Gasoline inventories increased by 2.991 million bbl during the reported
week, while distillate fuel oil stocks fell by 286,000 bbl.
Chicago CBOB Basis Down 7cts as Gasoline Futures Tumble
Chicago CBOB spot basis fell 7cts Tuesday (9/29) to a 7cts gallon discount
to October NYMEX RBOB futures, leading Midwest gasoline markets lower as
benchmark futures also declined.
The decline reversed Monday's move to parity with the futures contract and
marked the largest basis adjustment among the major Midwest trading hubs.
Elsewhere, Midwest gasoline basis was little changed, with Buckeye Complex,
Wolverine and Group 3 CBOB posting only one cent adjustments on the session.
NYMEX October RBOB futures fell $0.0595, or 1.78%, to settle at $3.2782
gallon, after touching an intraday low of $3.2328 gallon.
Latest EIA data showed PADD 2 motor gasoline inventories fell by 500,000 bbl
to 43.6 million bbl during the week ended September 18, remaining 3.4 million
bbl below the comparable week of 2025.USGC Jet Basis Drops 7cts After Five-Month High
U.S. Gulf Coast jet fuel basis retreated Tuesday (9/29) from the five-month
highs of the previous session, pausing ahead of the close of September trading
which has already delivered gains of more than 11% for the market.
USGC jet fuel basis fell 7cts to a 15cts discount to November NYMEX ULSD
futures, after reaching an 8cts discount Monday (9/28), its strongest level
since April 29, when basis was assessed at a 0.50ct discount, according to DTN
Energy data.
Despite Tuesday's decline, USGC jet fuel basis has strengthened sharply this
month. Basis has risen 38cts from a 46cts discount on September 3, supported by
tight global middle-distillate supplies following Persian Gulf supply
disruptions. The spot price for Gulf Coast jet fuel is up 11.12% for September.
Tuesday's pullback came while as the broader middle-distillate complex
remained elevated. USGC jet fuel spot prices climbed to around $4.92 gallon on
September 16 as jet fuel emerged as one of the strongest refined products
during the recent supply squeeze.
Latest EIA data showed Gulf Coast jet fuel inventories edged up by 100,000
bbl to 14.2 million bbl during the week ended September 18, rebounding from a
five-month low of 14.1 million bbl the previous week.The September 11 level was
the lowest since April 10, when inventories stood at 13.9 million bbl.
Gulf Coast jet fuel stocks remained 800,000 bbl above the 13.4 million bbl
reported during the comparable week of 2025.
U.S. Job Openings Little Changed at 7.1 Million in August
Job openings in the U.S. labor market were little changed in August at 7.079
million, the Bureau of Labor Statistics (BLS) reported Tuesday (9/29) in its
monthly Job Openings and Labor Turnover Summary, citing an opening rate of 4.3%.
Job openings, hires and separations in August were all little changed from
July levels. BLS said there were 5.2 million hires last month with a rate of
3.3%. The number and rate of quits held steady at 3.1 million and 1.9%,
respectively, as did the number of layoffs at 1.7 million.
The job openings rate for establishments with 1 to 9 employees decreased in
August, while all other metrics showed little or no change, BLS said.
July job openings were revised higher by 64,000 to 7.335 million, with the
rate at 4.4%.
EIA: U.S. Retail Diesel Drops 14.7cts to $6.382
U.S. pump prices for diesel dropped 14.7cts to $6.382 gallon during the week
ended September 28, retreating from $6.529 gallon the prior week, Energy
Information Administration data showed Tuesday (9/29).
Despite the weekly decline, the national average remained 57.2cts above the
previous 2022 peak of $5.810 gallon reported during the week ended June 20,
2022, and stood $2.628 above levels seen during the previous year.
The Gulf Coast (PADD 3) posted the largest weekly decline, falling 22.2cts
to $5.955 gallon, followed by the Lower Atlantic (PADD 1C), where prices
dropped 18.6cts to $5.953 gallon.
The Midwest (PADD 2) fell 15.4cts to $6.526 gallon, while the East Coast
(PADD 1) declined 13.1cts to $6.137 gallon.
The Rocky Mountain region (PADD 4) was the only PADD to post a weekly
increase, rising 6.7cts to $6.407 gallon. The West Coast (PADD 5) remained the
most expensive region at $7.357 gallon.
EIA: U.S. Gasoline Edges Down 1.3cts After 3-Week Rise
U.S. pump prices for regular gasoline edged down 1.3cts to $4.465 gallon
during the week ended September 28, snapping three consecutive weekly
increases, Energy Information Administration data showed Tuesday (9/29).
The national average remained $1.347 above levels seen during the previous
year and just below the $4.478 gallon reached the prior week, which was the
highest since May.
The Midwest (PADD 2) posted the largest weekly decline, falling 9.5cts to
$4.291 gallon, followed by the Gulf Coast (PADD 3), where prices dropped 4.8cts
to $3.924 gallon.
In contrast, the West Coast (PADD 5) posted the largest weekly increase,
rising 12.4cts to $5.724 gallon, while the Lower Atlantic (PADD 1C) increased
3.2cts to $4.195 gallon.
The West Coast (PADD 5) remained the most expensive region nationwide at
$5.724 gallon, while the Gulf Coast (PADD 3) continued to post the lowest
gasoline price at $3.924 gallon.
ULSD Racks Rebound as Gasoline Weakness Persists
U.S. wholesale rack markets were directionally split Tuesday (9/29), with
ultra-low sulfur diesel (ULSD) rebounding across all five PADDs after three
consecutive declines while gasoline extended losses across every region.
Nationwide ULSD rack prices averaged $4.9866 gallon, up 3.78cts from the
prior session's $4.9488 gallon, DTN data showed.
Conventional unleaded gasoline rack prices averaged $3.3860 gallon, down
4.94cts from Monday's $3.4354 gallon.
The divergent rack moves came as energy markets continued to assess renewed
diplomatic efforts aimed at ending the U.S.-Iran conflict. U.S. and Iranian
officials have been holding separate discussions with regional mediators,
although uncertainty surrounding Middle East energy flows remains.
NYMEX WTI traded near $91.67 bbl Tuesday morning, little changed on the day.
Front-month New York Harbor ULSD fell 8.71cts to $4.4082 gallon, while RBOB
gasoline declined 3.82cts to $3.1196 gallon.
Refining margins also weakened. The diesel crack fell $3.11 to around
$104.09 bbl, while the gasoline crack declined $1.60 to about $45.97 bbl.
Despite softer futures and refining margins, ULSD racks increased across all
five PADDs. Midwest values posted the largest advance, rising 5.17cts to
$5.0218 gallon, followed by Gulf Coast prices, which gained 4.90cts to $4.8354
gallon. West Coast ULSD rose 3.37cts to $5.2995 gallon, Rocky Mountain values
increased 2.50cts to $5.3247 gallon and East Coast prices added 2.23cts to
$4.8543 gallon.
PADD 5 maintained the widest ULSD premium to the national average at
31.29cts, while PADD 3 held the largest discount at 15.12cts.
Gasoline racks moved in the opposite direction, declining across all five
regions for a second straight day.
Midwest values posted the largest drop, falling 8.66cts to $3.1056 gallon,
followed by Rocky Mountain prices, which declined 8.34cts to $3.8911 gallon.
Gulf Coast gasoline fell 4.49cts to $3.2137 gallon, East Coast values dropped
3.78cts to $3.2055 gallon and West Coast prices slipped 0.99ct to $4.2634
gallon.
PADD 5 maintained the largest gasoline premium to the national average at
87.74cts, while PADD 2 held the widest discount at 28.04cts.
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