U.S. Rack ULSD Up 33.5cts; Gasoline Jumps 24.9cts


   
Miguel E. Andujar
DTN Refined Fuels Market Reporter

   DAVENPORT, FL (DTN) -- Wholesale rack prices for ultra-low sulfur diesel 
(ULSD) and gasoline moved sharply higher Monday (4/6), following Thursday's 
mixed session, as physical markets strengthened after the long weekend despite 
softer futures tied to shifting geopolitical expectations in the Iran war.

   Nationwide ULSD rack prices averaged $4.4883 gallon, up 33.54cts from 
Thursday's $4.1529 gallon, according to DTN data. Conventional unleaded 
gasoline rack prices averaged $3.4119 gallon, up 24.96cts from $3.1623 gallon.

   Futures prices moved lower on Monday morning. Front-month May NYMEX ULSD 
futures declined 1.41cts to $4.3470 gallon, while May RBOB gasoline futures 
fell 4.33cts to $3.2427 gallon. WTI crude for May delivery slipped $0.09 to 
$111.45 bbl.

   Futures softened as markets weighed the possibility of a near-term easing in 
tensions. While Trump administration warned of further escalation if Iran does 
not reopen the Strait of Hormuz, reports that some international tankers have 
been allowed to transit the waterway provided some relief to supply concerns. 
That combination has eased immediate pressure in futures without fully removing 
risk from the market.

   Despite the softer tone in futures, rack prices moved higher across all 
regions, reflecting a stronger physical response following last week's 
volatility and ongoing constraints tied to global supply flows.

   ULSD racks increased across all regions Monday, with the largest moves in 
PADD 3 and PADD 1. Gulf Coast ULSD rose 36.49cts to $4.5388 gallon, while East 
Coast prices increased 34.43cts to $4.6302 gallon. Midwest ULSD climbed 
33.03cts to $4.1558 gallon, while West Coast values rose 29.65cts to $5.6489 
gallon, maintaining the strongest regional premium. PADD 4 posted the smallest 
increase, up 22.22cts to $4.1439 gallon.

   Relative to the national ULSD rack average of $4.4883 gallon, PADD 5 held 
the widest premium at $1.1606 above the U.S. benchmark, followed by PADD 1 at 
14.19cts above and PADD 3 at 5.05cts above. PADD 4 and PADD 2 traded below the 
national average, with the Midwest holding the deepest discount at 33.25cts 
below the benchmark.

   On conventional unleaded gasoline racks, all regions moved higher Monday. 
PADD 4 recorded the largest increase, rising 21.97cts to $3.1223 gallon. 
Midwest gasoline climbed 19.20cts to $2.8862 gallon, while Gulf Coast prices 
rose 18.92cts to $3.1577 gallon. East Coast values increased 15.88cts to 
$3.1657 gallon, and West Coast gasoline rose 18.58cts to $4.0262 gallon, 
holding the strongest premium.

   Compared with the national gasoline average of $3.4119 gallon, PADD 5 
remained the only region trading at a premium, at 61.43cts above the benchmark. 
All other regions held discounts, led by PADD 2 at 52.57cts below the national 
average, followed by PADD 4 at 28.96cts, PADD 3 at 25.42cts, and PADD 1 at 
24.62cts.

   Premium gasoline rack prices increased across all regions, broadly in line 
with conventional gasoline. West Coast premiums remained elevated at $4.4274 
gallon, while Gulf Coast and East Coast markets also posted notable increases.

   The move higher in rack prices despite softer futures reflects how physical 
markets continue to price in tighter near-term supply conditions, while futures 
react more quickly to incremental shifts in geopolitical expectations. That 
tightness is also evident in structure, with both RBOB and ULSD futures holding 
steep backwardation, as front-month contracts continue to trade at premiums of 
more than 13cts and 38cts, respectively, reinforcing signals of strong prompt 
demand and immediate supply needs across the refined products complex.

    




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