MARKETWIRE ALERTS
Miguel E. Andujar
DTN Refined Fuels Market Reporter
MARKETWIRE ALERTS
MarketWire Afternoon News July 22nd:
Updated at 5:00 PM ET
HEADLINES:
-- Midwest CBOB Basis Weakens Despite Regional Stock Draw
-- Analysis: EIA Sees Diesel Output Top Seasonal Record Highs
-- Marathon Galveston Bay Reports Propylene Release
-- EIA: PADD 2 Crude, Gasoline and Distillate Stocks Draw
-- EIA: PADD 3 Gasoline Rebounds After 8-Year Low
-- EIA: PADD 5 Gasoline Stocks Rise for 2nd-Wk, Distillates Dip
-- EIA: Ethanol Production, Blender Demand Inch Higher
-- EIA: PADD 1 Distillate Stocks Up as Runs Rise, Gasoline DN
-- EIA: Propane/Propylene Stocks Jump, Up 21.2% on Year
-- EIA: Crude Stocks Rise; Gasoline Near 8-Month Low
-- CITGO Reports Unplanned Flaring at Corpus Christi Refinery
-- Aurora Unveils Second-Generation Driverless Trucks
NEWS:
Midwest CBOB Basis Weakens Despite Regional Stock Draw
The basis for Midwest CBOB widened Wednesday (7/22) as rallying NYMEX
gasoline futures offset the impact of an inventory draw for the product in the
PADD 2 region.
Chicago CBOB was talked at a discount of 22.5cts to August NYMEX RBOB,
widening by 1.5cts on the day.
On both the Buckeye Storage Complex and Wolverine Pipeline, CBOB was cited
at a 16cts discount. At Buckeye, the widening was by 3cts while for Wolverine,
it was by 7cts.
Group 3 CBOB, meanwhile, traded at a 20.5cts discount, widening by 4cts on
the session.
The weakening of the cash market for Midwest gasoline occurred as August
NYMEX RBOB futures rose $0.0088 to end Wednesday's session at $3.4147 gallon.
PADD 2 gasoline stocks fell by 1.2 million bbl during the week ended July 17
to reach 43.5 million bbl, the Energy Information Administration reported in
its Weekly Petroleum Status Report. The current inventory level is down 2.2
million bbl compared with the 45.7 million bbl reported during the same week of
2025.
Midwest gasoline imports edged up by 1,000 bpd week-on-week to 13,000 bpd,
though inbound volumes remained 6,000 bpd below year-ago levels.
Analysis: EIA Sees Diesel Output Top Seasonal Record Highs
Domestic distillate fuel oil production continued to climb last week,
jumping 90,000 bpd to 5.35 million bpd, the highest for the corresponding
reporting week on record, Energy Information Administration data published
Wednesday (7/22) showed.
Ultra-low sulfur diesel (ULSD) output averaged 5.16 million bpd in the week
ending July 17, shattering the previous seasonal record by more than 100,000
bpd.
In response to unevenly soaring cracks amid a global diesel tightness
persisting since Russia's invasion of Ukraine in 2022, U.S. refiners have
tweaked operations to favor output of products from the middle of the barrel
like diesel over that of gasoline. High international demand for U.S. refined
products amid the Hormuz supply crisis reinforced this preexisting trend.
Exports of kerosene-type jet fuel and distillate fuel oil from the United
States have during that time set new records and continued at elevated levels
even as the Middle East supply disruption was easing. Last week, distillate
fuel oil exports clocked in at 1.6 million bpd, and over the last four weeks
were up 12.3% year-on-year.
The differential between ULSD and RBOB futures rapidly widened in the first
weeks of the supply disruption, peaking at $1.322 gallon in mid-March, the most
since the EU proposed a refined product import ban targeting Russian diesel in
autumn of 2022 and which was enacted in February of the following year.
Consequently, ULSD production surpassed pre-pandemic seasonal highs this
year. Output over the last four weeks averaged 5.037 million bpd, 4.5% above
the five-year average and 3.5% higher than in the same period last year.
Refinery runs during this time were only marginally higher than in 2025,
however. Net crude inputs ran a mere 128,000 bpd, or 0.8%, ahead of year-ago
levels, suggesting that the outsized rise in diesel output was due to refiners
optimizing middle distillate yields.
The fuel production shift also led to gasoline inventories dwindling at a
much faster pace than usual for the time of year. Despite last week's near
800,000 bbl build, they continued to hover near 14-year seasonal lows at 211.3
million bbl, down 8.6% year-on-year and 7% below the five-year average.
Distillate fuel stocks, in contrast, were at 109.6 million bbl in line with
last year's near-record low levels.
Marathon Galveston Bay Reports Propylene Release
Marathon Petroleum reported a propylene release at its 631,000 bpd Galveston
Bay refinery, the largest refinery in the United States, in Texas City, Texas,
after a bleeder valve was inadvertently opened, according to a filing with the
Texas Commission on Environmental Quality.
The event occurred between 9:40 a.m. and 10:50 a.m. CT on Monday (7/21),
according to the filing made Tuesday (7/22).
According to the report, the inadvertent opening of a bleeder valve at the
refinery's Propylene Unit, which produces a petrochemical feedstock used in
plastics manufacturing, released an estimated 500 pounds of propylene to the
atmosphere, exceeding the reportable quantity based on preliminary estimates.
The company said fire monitors were used to suppress vapors while operators
and emergency response personnel secured the area, stopped the release and
returned the unit to a safe condition.
The refinery primarily produces gasoline, diesel and jet fuel.
DTN reached out to Marathon Petroleum for additional details but did not get
an immediate response.
EIA: PADD 2 Crude, Gasoline and Distillate Stocks Draw
Midwest crude oil, gasoline and distillate inventories drew last week, while
jet fuel stocks increased, the Energy Information Administration (EIA) reported
Wednesday (7/22).
Motor gasoline inventories in the PADD 2 region drew by 1.2 million bbl
during the week ended July 17 to stand at 43.5 million bbl, according to the
EIA's Weekly Petroleum Status Report. Year-on-year, Midwest gasoline stocks
fell by 2.2 million bbl from the 45.7 million bbl recorded during the
corresponding week of 2025.
Weekly imports of gasoline rose by 1,000 bpd on the week to average 13,000
bpd during the current reporting period. This inbound volume fell by 6,000 bpd
from the year-ago level of 19,000 bpd recorded during the same week last year.
PADD 2 distillate fuel oil inventories fell by 300,000 bbl on the week to
28.6 million bbl. That weekly draw placed regional distillate inventories 2.8
million bbl higher than the 25.8 million bbl logged during the corresponding
week last year.
Distillate imports into the Midwest averaged 14,000 bpd, up by 10,000 bpd on
the week but down by 1,000 bpd from the prior year. This inbound volume
compared to 15,000 bpd imported during the corresponding week last year.
Jet fuel stocks rose by 600,000 bbl from the prior week to 7.9 million bbl,
standing 800,000 bbl above the previous year's level.
Crude oil inventories decreased by 800,000 bbl on the week to 97.1 million
bbl, which is 5.6 million bbl lower than last year's level. Crude imports into
the PADD 2 region decreased by 72,000 bpd on the week to average 2,591,000 bpd,
according to latest EIA data.
This inbound crude oil volume was 394,000 bpd lower than the 2,985,000 bpd
reported by the agency during the corresponding week last year.
Refiner use of crude in the Midwest stood at 4.280 million bpd last week,
versus 4.224 million the week prior and 4.161 million a year ago. The regional
utilization rate rose to 100.3% versus the prior week's 99.1% and remained
above the year-ago level of 97.8%.
EIA: PADD 3 Gasoline Rebounds After 8-Year Low
U.S. Gulf Coast (PADD 3) gasoline inventories rebounded during the week
ended July 17 after falling to an eight-year low the previous week, while
distillate fuel inventories also increased, jet fuel stocks edged down and
crude oil inventories climbed, according to the U.S. Energy Information
Administration's Weekly Petroleum Status Report released Wednesday.
Motor gasoline inventories in the PADD 3 region increased by 2.7 million bbl
to 78.2 million bbl during the reference week after dropping to their lowest
level since September 22, 2017, the previous week. Despite the build,
inventories remained 8.5 million bbl below the same week last year. Gasoline
imports into the Gulf Coast averaged 88,000 bpd, up from 29,000 bpd the
previous week and above the zero bpd reported during the comparable week of
2025.
Distillate fuel oil inventories, the feedstock for diesel, increased by
800,000 bbl to 43.1 million bbl during the profiled week. Inventories remained
500,000 bbl below the 43.6 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 edged down by 100,000 bbl to 16 million bbl during the
reference week but remained 1.4 million bbl above the same week last year. Jet
fuel imports into the Gulf Coast averaged 28,000 bpd after no imports were
reported the previous week.
Crude oil inventories in PADD 3 increased by 3.9 million bbl to 239.8
million bbl during the reference week, reversing the previous week's decline.
Inventories were 2 million bbl above the same week last year. Crude oil imports
into the Gulf Coast averaged 1.370 million bpd, up from 846,000 bpd the
previous week and above the 1.029 million bpd reported during the comparable
week last year.
Refinery utilization on the Gulf Coast edged down to 96.7% of operable
capacity from 97.1% the previous week, while crude oil inputs into refineries
averaged 9.379 million bpd, down from 9.507 million bpd the week before, EIA
data showed.
EIA: PADD 5 Gasoline Stocks Rise for 2nd-Wk, Distillates Dip
U.S. West Coast gasoline stockpiles climbed for second straight-week, while
distillates and jet fuel stocks reported a draw in the week ended July 17, the
U.S. Energy Information Administration (EIA) reported on Wednesday (7/22).
Motor gasoline inventories in the PADD 5 region climbed by 300,000 bbl to 29.7
million bbl during the week ended July 17, the EIA data showed. Year-on-year,
gasoline stocks in the region dropped 2.6 million bbl. PADD 5 gasoline imports
dropped by 40,000 bpd to 60,000 bpd last week and were 22,000 bpd higher
compared with the same week a year earlier.
In contrast, jet fuel stocks inventories in the region dropped by 500,000 bbl
to 11.6 million bbl during the profiled week, but were 800,000 bbl lower than
the volume reported during the same period last year, EIA data showed.
Distillate fuel oil inventories on the West Coast fell by 100,000 bbl to
10.8 million bbl. However, they were 100,000 bbl higher than a year ago.
Distillates imports in the same region rose 21,000 bpd to 48,000 bpd, and
increase 30,000 bpd compared with the same week of last year.
PADD 5 imported 106,000 bpd of jet fuel imports during the reference week, an
increase of 10,000 bpd from the prior week. On a yearly basis, jet fuel stocks
dropped 44,000 bpd.
Crude oil inventories in PADD 5 dropped by 1.3 million bbl to 44.8 million
bbl during the reporting week. They were 1.9 million bbl lower than the same
week last year. Crude imports increased by 35,000 bpd to 974,000 bpd and were
75,000 bpd lower compared with the same week a year earlier.
Refinery utilization on the West Coast fell to 88.7% from 91.0% the previous
week, according to EIA data.
EIA: Ethanol Production, Blender Demand Inch Higher
The Energy Information Administration reported on Wednesday (7/22) that
overall ethanol production in the United States averaged 1.094 million bpd in
the week ending July 17, up 54,000 bpd week-on-week and 16,000 bpd, or 1.5%
higher than in the same week last year. Four-week average output at 1.086
million bpd was 4,000 bpd above the same four weeks last year.
Midwest ethanol production averaged 1.037 million bpd, up 61,000 bpd
week-on-week and 11,000 bpd, or 1.1% higher than in the same week last year.
Four-week average output at 1.024 million bpd was 1,000 bpd below the same four
weeks last year.
Ethanol blending activity in the U.S. averaged 938,000 bpd, up 32,000 bpd
week-on-week and 21,000 bpd, or 2.3% higher than in the same week last year.
Four-week average blending demand at 916,000 bpd was 10,000 bpd above the same
four weeks last year.
Blender inputs at the East Coast were up 21,000 bpd on the week while inputs in
the Midwest were up 6,000 bpd, unchanged on the Gulf Coast and up 5,000 bpd on
the West Coast.
Domestic ethanol inventories ended the week at 24.481 million bbl, up 90,000
bbl week-on-week and 37,000 bbl, or 0.2% higher than in the same week last year.
East Coast PADD 1 inventories ended the week at 6.863 million bbl, up 377,000
bbl week-on-week and 322,000 bbl, or 4.5% lower than in the same week last year.
Midwest PADD 2 inventories ended the week at 10.07 million bbl, up 98,000 bbl
week-on-week and 218,000 bbl, or 2.1% lower than in the same week last year.
Gulf Coast PADD 3 inventories ended the week at 5.086 million bbl, down 237,000
bbl week-on-week and 629,000 bbl, or 14.1% higher than in the same week last
year.
West Coast PADD 5 inventories ended the week at 2.136 million bbl, down 153,000
bbl week-on-week and 49,000 bbl, or 2.2% lower than in the same week last year.
EIA: PADD 1 Distillate Stocks Up as Runs Rise, Gasoline DN
Distillate inventories on the U.S. East Coast rose during the week ended
July 17, while stocks of crude oil, gasoline and jet fuel fell, the U.S. Energy
Information Administration (EIA) reported Wednesday (7/22).
Distillate balances on the East Coast increased by 1.3 million bbl to 23.9
million bbl, leaving regional levels of the product 2.3 million bbl below
comparable year-ago levels, the EIA's Weekly Petroleum Status Report showed.
East Coast distillate imports increased by 48,000 bpd to 97,000 bpd from the
previous week and were up from 81,000 bpd imported during the same week of 2025.
Motor gasoline inventories in PADD 1 fell by 1.0 million bbl to 53.1 million
bbl and remained 6.7 million bbl below the 59.8 million bbl recorded a year
earlier. Gasoline imports into the region increased by 100,000 bpd to 332,000
bpd but were down from 465,000 bpd reported in the same week last year.
Jet fuel inventories decreased by 1.1 million bbl to 11.3 million bbl,
leaving stocks 600,000 bbl above the 10.7 million bbl reported during the
comparable week in 2025. East Coast jet fuel imports rose to 19,000 bpd from
13,000 bpd the previous week, compared to zero imports recorded a year earlier.
Crude oil inventories on the East Coast fell by 200,000 bbl to 7.8 million
bbl and remained 900,000 bbl below their comparable year-ago levels. Crude
imports into PADD 1 averaged 496,000 bpd, up from 382,000 bpd the previous week
but below the 591,000 bpd reported during the same week of 2025.
Refinery utilization on the East Coast rose to 86.9% of operable capacity
from 85.0% the previous week and 81.4% in the prior year. Crude oil inputs
increased by 24,000 bpd to 804,000 bpd during the reference week, compared to
the 718,000 bpd recorded during the same week last year.
EIA: Propane/Propylene Stocks Jump, Up 21.2% on Year
The Energy Information Administration reported on Wednesday (7/22) total
domestic propane/propylene stocks of 99.776 million bbl in the week ending July
17, up 6.287 million bbl week-on-week and 17.449 million bbl, or 21.2% higher
than in the same week last year.
Data show propane/propylene exports last week averaged 1.573 million bpd, down
415,000 bpd week-on-week and 522,000 bpd, or 24.9%, lower than in the same week
last year.
Implied demand for propane/propylene in the United States averaged 526,000 bpd,
down 37,000 bpd week-on-week and 416,000 bpd, or 44.2% lower than in the same
week last year.
EIA reports domestic propane/propylene production averaged 2.894 million bpd,
down 16,000 bpd week-on-week and 23,000 bpd, or 0.8% higher than in the same
week last year.
East Coast PADD 1 inventories ended the week at 6.992 million bbl, down 286,000
bbl week-on-week and 975,000 bbl, or 16.2% higher than in the same week last
year.
Midwest PADD 2 inventories ended the week at 23.518 million bbl, up 584,000 bbl
week-on-week and 1.966 million bbl, or 9.1% higher than in the same week last
year.
Gulf Coast PADD 3 inventories ended the week at 64.724 million bbl, up 5.748
million bbl week-on-week and 14.17 million bbl, or 28% 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 4.542 million bbl, up 240,000 bbl week-on-week and 338,000 bbl, or 8%
higher than in the same week last year.
EIA: Crude Stocks Rise; Gasoline Near 8-Month Low
U.S. commercial crude oil inventories increased during the week ended July
17, according to Energy Information Administration data released Wednesday,
while gasoline inventories rose slightly but remained near eight-month lows.
Distillate fuel inventories also increased, while jet fuel inventories declined.
Commercial crude oil inventories increased by 2 million bbl to 411.7 million
bbl during the profiled week but remained 7.3 million bbl, or 1.7%, below the
same week last year. Crude oil imports averaged 5.806 million bpd in the
profiled week, up by 117,000 bpd from the previous week. Over the last four
weeks, crude imports averaged 5.601 million bpd, down 11.4% from the same
period last year. Crude oil exports averaged 3.353 million bpd last week, down
from 3.721 million bpd the previous week and below the 3.855 million bpd
reported during the comparable week last year.
Total motor gasoline inventories increased by 800,000 bbl to 211.3 million
bbl during the week profiled. Despite the increase, inventories remained near
their lowest level since the week ended Nov. 21, 2025, when stocks stood at
209.9 million bbl. Gasoline inventories were 19.8 million bbl, or 8.6%, below
the same week last year. Gasoline imports averaged 494,000 bpd compared with
354,000 bpd the previous week and 606,000 bpd a year earlier. Gasoline exports
averaged 807,000 bpd versus 967,000 bpd the previous week and 720,000 bpd
during the comparable week last year.
Distillate fuel inventories increased by 1.4 million bbl to 109.6 million
bbl during the reference week but remained 300,000 bbl, or 0.3%, below the same
week last year. Distillate imports averaged 173,000 bpd compared with 93,000
bpd the previous week and 115,000 bpd a year earlier. Distillate exports
averaged 1.604 million bpd versus 1.546 million bpd the previous week and 1.431
million bpd during the comparable week last year.
Jet fuel inventories fell by 1 million bbl to 47.4 million bbl last week but
remained 1.9 million bbl, or 4.2%, above the same week last year. Jet fuel
imports averaged 155,000 bpd compared with 112,000 bpd the previous week and
150,000 bpd a year earlier. Jet fuel exports averaged 290,000 bpd versus
412,000 bpd the previous week and 256,000 bpd during the comparable week last
year.
Refinery utilization edged down to 96.1% of operable capacity last week from
96.2% the previous week. Crude oil inputs into refineries averaged 17.065
million bpd, down by 58,000 bpd from the previous week's 17.123 million bpd.
Total products supplied over the last four weeks averaged 20.616 million
bpd, up 2.3% from the same period last year. Gasoline demand averaged 8.753
million bpd, essentially unchanged from the comparable four-week period of
2025, while distillate demand averaged 3.872 million bpd, up 1.6% from the
previous year. Jet fuel demand averaged 1.715 million bpd, up 1.2% from the
same four-week period last year.
CITGO Reports Unplanned Flaring at Corpus Christi Refinery
CITGO reported an emissions event at the coker wet compressor of its 167,000
bpd Corpus Christi Refinery West Plant, triggering an unplanned flaring,
according to a filing with the Texas Commission on Environmental Quality
The incident began at 8:40 a.m. on Tuesday (7/21), and lasted one hour and
45 minutes, ending at 10:25 a.m.
According to the initial report, flaring became necessary when the West
Plant coker wet compressor tripped. The flaring occurred at the facility's
process/emergency flare unit.
The event released an estimated 101 pounds of hydrogen sulfide and 501
pounds of sulfur dioxide into the atmosphere. Both compounds are listed with an
emission limit of zero pounds, meaning the release constituted an exceedance.
In response, the unit was placed on circulation while operators took
corrective actions to minimize flaring emissions.
This is the second unplanned emission reported at CITGO's Corpus Christi
refinery within one week.
Aurora Unveils Second-Generation Driverless Trucks
Aurora Innovation announced on Wednesday (7/22) the launch of its
second-generation driverless trucks, which will be deployed across its
commercial network of 10 driverless routes throughout the U.S. Sun Belt, to
serve additional customers.
Aurora deployed Class 8 trucks powered by the Aurora Driver, its
self-driving system, on public roads last year. As of the end of June, the
Aurora Driver has completed nearly 440,000 driverless miles, according to a
company statement.
"Deploying our second-generation truck allows us to put hundreds of
autonomous trucks on the road and ultimately into the hands of more customers,"
said Chris Urmson, CEO and co-founder of Aurora.
The new fleet, based on the International(r) LT(r) Series vehicle, is also
powered by Aurora's next-generation hardware, which is built to last one
million miles -- a key factor for deploying at scale.
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