USGC Weekly: Spot Prices Dip Amid Easing Risk Premiums


   
Miguel E. Andujar
DTN Refined Fuels Market Reporter

   DAVENPORT, FL (DTN) -- U.S. Gulf Coast (USGC) fuel spot prices dropped 
during the week ended June 26 as easing geopolitical concerns eroded the 
market's risk premium, although they remained higher than a year earlier. Jet 
fuel prices posted the steepest weekly decline despite a draw in inventories 
last week.

   USGC jet fuel spot prices posted the largest decline during the week, 
falling 10.53cts or 3.73% week over week to average $2.7158 gallon. Despite the 
weekly decline, prices remained 23.74% above the previous year's level. 
Meanwhile, USGC ultra-low sulfur diesel (ULSD) declined 6.73cts or 2.12% to 
average $3.1028 gallon, while CBOB regular slipped 5.45cts or 1.94% to average 
$2.7494 gallon. Compared with the previous year, ULSD was 34.28% higher and 
CBOB stood 41.33% above the same period.

   Mixed inventory data from the U.S. Energy Information Administration 
provided little direction for the market. PADD 3 jet fuel inventories fell by 
800,000 bbl to 15.1 million bbl during the week ended June 19, although they 
remained 1.1 million bbl above the comparable week of the previous year. 
Conversely, gasoline inventories in the same region rebounded by 900,000 bbl to 
78.7 million bbl during the week ended June 19 but remained 4.9 million bbl 
below the same week of the previous year. Imports fell to zero from 141,000 bpd 
the prior week.

   Distillate fuel oil inventories rose by 3 million bbl to 42.7 million bbl 
but remained 600,000 bbl below the previous year's level.

   Crude oil inventories dropped by 4 million bbl to 239.8 million bbl, while 
crude imports climbed by 159,000 bpd to 1.174 million bpd. Refinery utilization 
eased to 96.2% from 96.7% the previous week.

   Operationally, Gulf Coast refiners remained active despite isolated 
disruptions. TotalEnergies reported a six-day unplanned shutdown affecting 
multiple process units at its 238,000 bpd Port Arthur refinery following a 
lightning-related power outage, while Phillips 66 reported a short-duration 
flaring event at its 277,000 bpd Sweeny refinery after a process upset. Neither 
event appeared to materially affect regional fuel supply during the week.

    




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