U.S. Rack ULSD Dips 46.1cts; Gasoline Falls 24.3cts


   
   DAVENPORT, FL (DTN) -- Wholesale rack prices for ultra-low sulfur diesel and 
gasoline moved sharply lower Tuesday (3/24), reversing Monday's increases, even 
as futures markets moved higher on renewed geopolitical tensions tied to the 
Iran war.

   Nationwide ULSD rack prices averaged $3.8915 gallon, down 46.08cts from 
Monday's $4.3523 gallon, according to DTN data. Conventional unleaded gasoline 
rack prices averaged $3.0380 gallon, down 24.33cts from $3.2813 gallon. Premium 
grade gasoline also declined across all regions.

   ULSD racks fell across all regions Tuesday, with the largest declines in 
PADD 1 and PADD 2. East Coast ULSD dropped 48.96cts to $4.0952 gallon, while 
Midwest prices declined 46.19cts to $3.4834 gallon. Gulf Coast values fell 
45.09cts to $3.8917 gallon, essentially in line with the national average. West 
Coast prices declined 40.83cts to $4.7913 gallon, maintaining the strongest 
regional premium, while PADD 4 fell 22.74cts to $4.1606 gallon.

   Relative to the national ULSD rack average of $3.8915 gallon, PADD 5 held 
the widest premium at 89.98cts above the U.S. benchmark, followed by PADD 4 at 
26.91cts above. PADD 1 also remained above the national average, while PADD 3 
was effectively flat. PADD 2 continued to hold the deepest discount, at 
40.81cts below the benchmark.

   On conventional unleaded gasoline racks, all regions moved lower on Tuesday. 
PADD 1 posted the steepest decline, falling 25.46cts to $2.7224 gallon. PADD 5 
dropped 22.55cts to $3.7569 gallon, while PADD 3 declined 22.66cts to $2.7111 
gallon. PADD 2 fell 22.47cts to $2.5734 gallon, maintaining the deepest 
discount nationally, while PADD 4 recorded the smallest move, down 10.38cts to 
$3.2059 gallon.

   Compared with the national gasoline average of $3.0380 gallon, PADD 5 
remained the only region at a premium, at 71.89cts above the benchmark. All 
other regions held discounts, led by PADD 2 at 46.46cts below the national 
average, followed by PADD 3 at 32.69cts and PADD 1 at 31.56cts. PADD 4 remained 
modestly above the benchmark.

   Premium gasoline rack prices declined across all regions, broadly in line 
with conventional gasoline. The Midwest posted the largest drop, down 27.93cts 
to $3.2073 gallon, while the East Coast fell 26.72cts to $3.3537 gallon. West 
Coast premiums remained elevated at $4.1359 gallon despite a 24.61cts decline.

   Futures prices moved higher Tuesday morning, diverging from physical rack 
markets. Front-month May NYMEX ULSD futures increased 16.82cts to $3.9214 
gallon, while May RBOB gasoline futures rose 11.63cts to $3.0437 gallon. WTI 
crude for May delivery advanced $3.11 to $91.24 bbl.

   The move higher in futures followed escalating geopolitical tensions after 
Iran denied U.S. claims of renewed negotiations, while Israeli and Iranian 
attacks continued, reintroducing risk premium into crude and refined product 
markets.

   The sharp decline in rack prices despite higher futures suggests physical 
markets are correcting after last week's rally, with wholesale prices adjusting 
lower as supply conditions stabilize and buying interest softens following the 
surge.




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