MARKETWIRE ALERTS

MARKETWIRE ALERTS 

MarketWire Afternoon News for September 16^th

Updated at 5:30 PM ET 

HEADLINES:

–EPA Proposes Supplemental RFS Rule

–API: Crude, Gasoline Stocks Fell, Distillates Rose Last Week

–BTS: U.S. Airlines’ Fuel Usage and Cost Rise in July

–EIA: US Gasoline Slips; West Coast Jumps 7.9cts

–EIA: US Diesel Prices Edge Down 2.7cts on Week

NEWS:

EPA Proposes Supplemental RFS Rule

The US Environmental Protection Agency issued Tuesday (9/16) a proposal for relocating biofuel volumes granted to the small refinery exception (SRE) program by 50% and 100% through 2027.

The EPA said the so-called supplemental notice of the proposed Renewable Fuel Standard (RFS)  “Set 2” covers volume requirements in 2026 and 2027 that extends exemptions given out on August 22 to small refineries, that typically produce less than 75,000 bpd.

Specifically, under consideration, it said, are small refinery exemptions for compliance years 2023-2025 that will be accounted for when establishing FRS in the “Set 2” final rule.

Ahead of the EPA notice, small refinery exemption decisions on August 22 this year allowed utilization of significant volumes of gasoline and diesel for the 2023 and 2024 compliance years. That has resulted in an increased number of Renewable Identification Numbers (RINs) available for obligated parties to use for compliance. One RIN equals one ethanol-equivalent gallon.

EPA said it expects additional exemptions to be granted for the 2025 compliance year. The ability for obligated parties to use these RINs to comply with the 2026 and 2027 renewable volume obligations is expected to impact demand for renewable fuel if not carefully considered, EPA said.

API: Crude, Gasoline Stocks Fell, Distillates Rose Last Week

The American Petroleum Institute on Wednesday (9/16) reported a draw in U.S. crude and gasoline inventories for the week ended September 12, while citing a build in distillate fuel stocks.

API reported that U.S. commercial crude oil supply fell by 3.42 million bbl last week, while inventories at Cushing, Oklahoma, the delivery point for NYMEX West Texas Intermediate futures, declined by 379,000 bbl.

Gasoline inventories dropped by 691,000 bbl in the week ending September 12, extending recent weakness. Distillate fuel stocks increased by 1.906 million bbl for the week.

BTS: U.S. Airlines’ Fuel Usage and Cost Rise in July

U.S. scheduled service airlines consumed 1.76 billion gallons of jet fuel in July, 4.1% more than June’s 1.69 billion gallons and 1.7% above the May 2024 tally of 1.73 gallons, according to the latest data from U.S. Department of Transportation’s Bureau of Transportation Statistics.

Total July fuel expenditure was $4.12 billion, up 10.2% from the prior month expenditure of $3.74 billion and 7.8% below the July 2024 cost at $4.47 billion. BTS data show U.S. scheduled service airlines paid $2.34 gallon for jet fuel in July, 12cts or 5.4% more than the June level of $2.22, and 24cts, or 9.3%, below the July 2024 cost of $2.58.

EIA: US Gasoline Slips; West Coast Jumps 7.9cts

The national average price of retail regular gasoline slipped for the first time in four weeks Monday (9/15), led by a sharp increase on the West Coast despite declines across most other regions, latest data from the Energy Information Administration showed.

The national average for retail regular gasoline slipped by 2.4cts to $3.168 gallon, reaching 1.2cts below the same week in 2024.

West Coast PADD 5 posted the steepest rise, climbing by 7.9cts to $4.273 gallon, or 13.7cts above the year-ago level. 

West Coast less California also increased by 11.7cts to $4.063 gallon, up 34.0cts from the same week in 2024.

The East Coast PADD 1 average decreased by 4.7cts to $3.016 gallon, or by 6.9cts year-on-year. Within the region, New England PADD 1A eased by 1.4cts to $3.096 gallon, or by 5cts from a year ago.

Central Atlantic PADD 1B dropped by 3.7cts to $3.187 gallon, cheaper by 5.9cts from 2024 levels. Lower Atlantic PADD 1C fell by 6.0cts to $2.889 gallon, or by 8.1cts from a year ago.
The Midwest PADD 2 average declined by 7.4cts to $2.981 gallon, or 2.4cts under the year-ago level.
The Gulf Coast PADD 3 price increased by 4.1cts to $2.774 gallon, or 4.6cts above the same week in 2024.
The Rocky Mountain PADD 4 average fell by 6.0cts to $3.180 gallon, or 22.0cts from the same week last year.

EIA: US Diesel Prices Edge Down 2.7cts on Week

The national average price for retail diesel fuel declined for the first time in three weeks as of Monday (9/15), led by a sharp pullback in Midwest pricing, according to the latest data from the Energy Information Administration.

The national average for retail diesel fuel fell by 2.7cts to $3.739 gallon. That was still 21.3cts above the pricing from the same week of last year.

Midwest PADD 2 registered the steepest regional move, dropping by 4.4cts to $3.710 gallon as of September 15. It remained 22.9cts higher year-on-year.

Gulf Coast PADD 3 prices eased by 1.5cts to $3.389 gallon, staying 21.7cts  above 2024 levels.

West Coast PADD 5 diesel edged down by 1.0cts to $4.523 gallon, fetching 27.9cts above the same period of the prior year. Meanwhile, West Coast less California fell by 2.9cts to $4.134 gallon, remaining up 31.6cts year-on-year. California rose by 1.3cts to $4.971 gallon, staying 23.8cts higher compared to last year.

The East Coast PADD 1 average diesel price slipped by 2.4cts to $3.748 gallon as of September 15, priced 16.3cts higher than a year back. New England PADD 1A inched up  0.6cts to $3.961 gallon in the same reference period, Central Atlantic PADD 1B declined by 1.7cts to $3.920 gallon, and Lower Atlantic PADD 1C dropped by 3.0cts to $3.663 gallon.

Rocky Mountain PADD 4 moved down by 3.2cts to $3.722 gallon, while showing an increase of 13.4cts compared to the same period of last year.