USGC Weekly: Distillates Slip on Stockpile Spike


   
Miguel E. Andujar
DTN Refined Fuels Market Reporter

   DAVENPORT, FL (DTN) -- Fuel spot markets on the U.S. Gulf Coast fell during 
the week ended June 12, with middle distillates retreating after recent 
strength while crude inventories extended their decline to the lowest level 
since February.

   USGC jet fuel recorded the largest decline during the week, falling 21.57cts 
or 6.37% week-over-week to average $3.1712 gallon, followed by USGC ultra-low 
sulfur diesel (ULSD), which declined 17.27cts or 4.75% to average $3.4647 
gallon. Despite the weekly decline, both products remained above the previous 
year's levels of $2.0062 gallon for jet fuel and $2.1212 gallon for ULSD.

   Distillate fundamentals remained mixed after the U.S. Energy Information 
Administration reported a 600,000 bbl build in PADD 3 distillate fuel oil 
inventories to 42.2 million bbl during the week ended June 5. Even with the 
increase, inventories remained below the 45.1 million bbl reported during the 
same week of the previous year. Ultra-low sulfur distillate inventories also 
increased by 700,000 bbl to 35 million bbl.

   Jet fuel inventories increased by 900,000 bbl to 15.2 million bbl and 
remained above the 13.6 million bbl reported during the same week of the 
previous year. As a net exporter of distillate and jet fuel, the Gulf Coast 
reported essentially no imports during the week.

   Gasoline also slipped, with USGC CBOB declining 3.20cts or 1.10% to average 
$2.8924 gallon. The move came as PADD 3 gasoline inventories declined by 
400,000 bbl to 80.9 million bbl but remained below the 86.6 million bbl 
reported during the same week of the previous year. Gasoline imports averaged 
120,000 bpd, up from 43,000 bpd the prior week and above the 36,000 bpd 
recorded during the previous year.

   Crude oil fundamentals remained supportive, with PADD 3 crude inventories 
falling by 2.8 million bbl to 249.7 million bbl, marking a second consecutive 
weekly draw and the lowest level since the week ended February 20, 2026, when 
inventories stood at 248.2 million bbl. Crude imports declined by 513,000 bpd 
to 1.046 million bpd and remained below the 1.197 million bpd reported during 
the previous year.

   Operationally, refinery activity remained elevated across the Gulf Coast 
during the week, with refinery utilization increasing to 98.4% from 98.1%, 
while crude oil inputs rose to 9.582 million bpd. One refinery event was 
reported during the week after a sulfur recovery unit trip at the Beaumont 
refinery triggered a short-duration emission event, though operations were 
restored, and no broader supply disruptions were reported.

    




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