U.S. Rack ULSD Drops 63.8cts; Gasoline Falls 27.6cts


   
   DAVENPORT, FL (DTN) -- Wholesale rack prices for ultra-low sulfur diesel 
(ULSD) and gasoline moved sharply lower Thursday (4/9), reversing Wednesday's 
increases, as physical markets reacted to the unwind of geopolitical risk after 
the Iran ceasefire, although futures rebounded on renewed uncertainty in the 
Middle East.

   Nationwide ULSD rack prices averaged $4.0623 gallon, down 63.80cts from 
Wednesday's $4.7003 gallon, according to DTN data. Conventional unleaded 
gasoline rack prices averaged $3.2125 gallon, down 27.59cts from $3.4884 
gallon. Premium gasoline averaged $3.5517 gallon, down 25.31cts on the session.

   Futures prices moved higher Thursday morning. Front-month May NYMEX ULSD 
futures rose 20.32cts to $4.0116 gallon, while May RBOB gasoline futures 
increased 5.61cts to $3.0620 gallon. WTI crude for May delivery climbed $5.10 
to $99.49 bbl.

   Futures found support as markets continued to reassess the ceasefire in 
Iran, with some uncertainty re-emerging after Iran accused the U.S. of not 
fully complying with elements of the agreement. While the truce remains in 
place, the tone has shifted, keeping some level of risk premium in the market 
as participants weigh how long the agreement will hold.

   Even so, rack prices moved decisively lower across all regions, as physical 
markets continue to catch down following Wednesday's sharp selloff in futures 
and the broader shift away from immediate supply concerns.

   ULSD racks declined across all regions Thursday, with the largest drops in 
PADD 1 and PADD 3. East Coast ULSD fell 67.09cts to $4.0534 gallon, while Gulf 
Coast prices dropped 65.71cts to $3.9979 gallon. Midwest values declined 
61.73cts to $3.8271 gallon, maintaining the deepest discount nationally. West 
Coast ULSD fell 62.80cts to $5.1456 gallon, holding the strongest regional 
premium, while PADD 4 posted the smallest decline, down 38.26cts to $4.0998 
gallon.

   Relative to the national ULSD rack average of $4.0623 gallon, PADD 5 held 
the widest premium at $1.0833 above the U.S. benchmark, followed by PADD 4 at 
3.75cts above. All other regions traded below the national average, led by PADD 
2 at a 23.52cts discount.

   On conventional unleaded gasoline racks, all regions moved lower Thursday. 
Gulf Coast gasoline recorded the largest decline, falling 26.88cts to $2.9065 
gallon, while East Coast prices dropped 26.69cts to $2.9039 gallon. Midwest 
gasoline declined 22.66cts to $2.6650 gallon, holding the deepest discount 
nationally. West Coast prices fell 24.88cts to $3.7948 gallon, maintaining the 
only premium position, while PADD 4 posted the smallest decline, down 17.77cts 
to $3.1129 gallon.

   Compared with the national gasoline average of $3.2125 gallon, PADD 5 
remained the only region trading at a premium, at 58.23cts above the benchmark. 
All other regions held discounts, led by PADD 2 at 54.75cts below the national 
average, followed by PADD 1 at 30.86cts, PADD 3 at 30.60cts, and PADD 4 at 
9.96cts.

   Premium gasoline rack prices declined across all regions, broadly in line 
with conventional gasoline. Midwest prices posted the largest drop, down 
32.15cts to $3.2583 gallon, while West Coast premiums remained elevated at 
$4.1882 gallon despite a 12.97cts decline.

   The sharp pullback in rack prices reflects how quickly physical markets are 
adjusting to the shift in sentiment following the ceasefire, even as futures 
begin to stabilize.

   Still, demand-side support remains in place, with U.S. Energy Information 
Administration data released Wednesday showing distillate exports rising for a 
third consecutive week to 1.57 million bpd from 1.4 million bpd, gasoline 
shipments increasing to 880,000 bpd from 820,000 bpd, and jet fuel exports 
extending a five-week increase to 442,000 bpd from 280,000 bpd.

   Even after the recent unwind, structure remains supportive, with ULSD 
backwardation holding above 27cts and RBOB near 8cts, indicating prompt supply 
was still relatively tight as markets continue to adjust to the latest 
developments around the ceasefire.




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