MARKETWIRE ALERTS

MARKETWIRE ALERTS 

MarketWire Afternoon News for October 7^th

Updated at 5:00 PM ET 

HEADLINES:

–API: Crude Stocks Snap Three-Week Draw; Gasoline, Distillates Fall

–Chevron: Kevin McLachlan New Vice President of Exploration

–Cardinal Delaware to own 150-Mile Gas Pipeline

–EIA-STEO: U.S. Biofuel Stocks to Reach 34.68M bpd End-2025

–Calif. to Debut E15, Adding Fuel Choice Amid Market Volatility

–EIA Sees Brent at $62 in 4Q25 as Global Inventories Rise

–IEA: Global Renewable Power Capacity Up 4,600 GW by 2030

–ONEOK: MB-4 To Reopen After Repairs, No Material Impact

–Shell: Q3 Refining Margin Likely Up 30% Q-on-Q  

–EIA: US Diesel Prices Slip 4.3cts on Week

–EIA: U.S. Retail Regular Gasoline Price Rises 0.6cts W-o-W

–U.S. Trade Data Unavailable Amid Government Shutdown

NEWS:

API: Crude Stocks Snap Three-Week Draw; Gasoline, Distillates Fall

U.S. crude oil inventories increased for the first time in four weeks during the week ended October 4, while gasoline and distillate fuel stocks declined, the American Petroleum Institute reported on Tuesday (10/7).

U.S. commercial crude oil supply rose by 2.78 million bbl last week, ending a three-week streak of draws.

Inventories at Cushing, Oklahoma, the delivery point for NYMEX West Texas Intermediate futures, fell by 1.152 million bbl, according to API.

Gasoline inventories fell by 1.245 million bbl in the week ending October 4, reversing the previous week’s build.

Distillate fuel stocks also declined, sliding by 1.822 million bbl after a 3 million bbl increase the prior week.

Chevron: Kevin McLachlan New Vice President of Exploration

Chevron announced Tuesday (10/7) it has appointed Kevin McLachlan to be Vice President of Exploration from November 1, succeeding  Liz Schwarze, who will be retiring in February after 36 years with the company.

McLachlan will oversee the company’s worldwide exploration program and McLachlan and be based in Houston, Chevron stated.

Prior to joining Chevron, McLachlan has held executive positions at TotalEnergies, Murphy Oil, Nexen and ExxonMobil.

Cardinal Delaware to own 150-Mile Gas Pipeline

Cardinal Midstream Partners announced on Tuesday (10/7)  the completion of 36 miles of new large-diameter, high- and low-pressure natural gas gathering pipelines in Eddy County, New Mexico and Loving County, Texas. 

Dallas-based Cardinal, a key player in the basin since acquiring assets from Medallion Midstream in 2023, said that with this addition it will own nearly 150 miles of natural gas infrastructure in the core of the Delaware Basin, one of the nation’s most active oil and gas producing regions.

“This new infrastructure brings Cardinal’s total operated network in the core of the Delaware Basin to nearly 150 miles of pipeline,” the company said in a statement.

Cardinal also announced the expansion of its Pecos River Processing Complex in Loving County. Scheduled for completion in early 2026. The project will add 220 MMcf/d of natural gas processing capacity, increasing Cardinal’s total capacity to 360 MMcf/d with flexibility for further expansion.

EIA-STEO: U.S. Biofuel Stocks to Reach 34.68M bpd End-2025

U.S. biofuels stockpiles are forecast to end the year at 34.68 million bpd, modestly lower than the 34.99 million bpd in 2024, and below the 35.9 million bpd estimate for next year, according to the Energy Information  Short-Term Energy Outlook monthly report released Tuesday (10/7).

Total distillate fuel oil inventories are expected to drop to 130.38 million bpd in 2025 from 140.51 million bpd last year and slide further to 128.875 million bpd in 2026, EIA-STEO data for October showed.

The EIA said total biofuels production was expected to drop to 1.21 million in 2025 from last year’s 1.31 million bpd, although a rebound to 1.28 million bpd was likely in 2026.

Ethanol production for both 2025 and 2026 was at 1.06 million bpd, unchanged from last year, the report stated

Biodiesel output is expected to drop to 80,000 bpd this year from 110,000 bpd in 2024, and below a 90,000 bpd hike estimated in 2026.

Renewable biodiesel production is forecast at 20,000 bpd for 2025, lower compared to last year’s 21,000 bpd and a 26,000 bpd hike forecasted for next year.

“We forecast renewable diesel production to increase in 2026, likely reducing the effects of lower refinery capacity on distillate fuel oil net imports,” the EIA-STEO report stated.

Calif. to Debut E15, Adding Fuel Choice Amid Market Volatility

California is preparing to introduce E15 gasoline, a 15% ethanol blend at gas stations statewide following Governor Gavin Newsom’s approval of Assembly Bill 30 (AB 30) earlier this year. The move marks the state’s most significant shift in retail fuel policy in more than a decade, aimed at providing drivers with a cheaper and cleaner gasoline alternative.

E15’s arrival also comes at a critical time for the U.S. West Coast fuel market, which has experienced persistent volatility this year. With refinery reliability issues, emergency flaring events, and fluctuating spot prices driving sharp week-to-week swings, the addition of E15 could gradually reshape how California manages both cost pressures and emissions in its transportation sector.

Throughout 2025, refinery disruptions have repeatedly roiled gasoline supply across the region. Chevron’s 269,000 bpd El Segundo refinery reported emergency flaring on October 6, following another incident between September 29 and October 1, according to regulatory filings with the South Coast Air Quality Management District. Shortly after the latest incident, the Los Angeles jet fuel differential widened sharply, moving from minus 9cts to 20cts above November NYMEX RBOB futures on October 6. While sources did not attribute that increase directly to El Segundo flaring, it underscores how sharply differentials can move within the USWC market. Similar events at other facilities have also tightened supply and sent CARBOB spot prices climbing and falling in wide, unpredictable intervals.

E15’s introduction represents a new layer of flexibility in this environment. The blend, already common in other U.S. markets, allows for slightly higher ethanol content, which can lower pump prices and extend gasoline supply without major refinery reconfigurations. According to a biodiesel market source, beyond cost relief, E15 advances California’s long term clean fuel goals by cutting carbon intensity and reducing dependence on crude oil.

“While the price difference between E15 and regular gasoline does fluctuate, it is still a cheaper, cleaner option,” the source told DTN, adding that broader adoption could help smooth price volatility and increase renewable fuel integration in the region.

California’s Air Resources Board continues to evaluate E15’s compatibility with the state’s strict air quality standards, and availability will roll out gradually. Still, with West Coast gasoline markets facing some of the highest volatility in the country, the introduction of E15 could mark an important step toward possibly stabilizing prices and advancing the state’s transition to lower carbon fuels.

EIA Sees Brent at $62 in 4Q25 as Global Inventories Rise

Brent crude is expected to average $62 bbl in the fourth quarter of 2025, versus the $69 bbl average anticipated for all of this year, the U.S. Energy Information Administration said Tuesday (10/7) in its Short-Term Energy Outlook (STEO) for October.

The third quarter outlook for Brent also runs well below the $81 bbl average in 2024.

WTI crude is seen averaging $58 bbl in the fourth quarter versus $65.79 in the third. For all of 2025, the U.S. crude benchmark is anticipated to average $65 bbl, down sharply from the 2024 average of $76.60.

The EIA attributed the expected price drops to the global stockpile situation in crude.

“We expect global oil inventories to rise through 2026, putting significant

downward pressure on oil prices in the coming months,” it added.

The EIA expects global oil inventories to build by an average of 2.6 million bpd in 4Q25, following increases of 1.9 million bpd from May through September.

Inventory growth is projected to continue into next year, averaging 2.1 million bpd.

The agency noted that the forecasted 4Q25 build is higher than last month’s estimate, as OPEC+ members increase production in line with the group’s recently expanded output targets.

U.S. crude oil production reached a record high in July at more than 13.6 million bpd, prompting the EIA to raise its outlook for domestic output. The agency now expects U.S. crude oil production to average 13.5 million bpd in both 2025 and 2026, compared with 13.4 million bpd and 13.3 million bpd, respectively, in last month’s forecast.

The October STEO also anticipates continued growth in U.S. crude inventories as refinery capacity declines in 2026 due to planned closures.

Total U.S. net imports of petroleum products are forecast to rise to 1.5 million bpd in 2026, up by 300,000 bpd from this year, while crude oil inventories are expected to continue building as production outpaces refinery inputs.

With crude prices easing, the EIA expects the U.S. retail gasoline price to average about $2.90 gallon in 2026, down from $3.10 gallon this year.

U.S. distillate inventories are projected to end 2025 at about 114 million barrels, which will likely keep refining margins for diesel elevated through 2026.

IEA: Global Renewable Power Capacity Up 4,600 GW by 2030

Global renewable power capacity is expected to rise by 4,600 GW by 2030, doubling current levels in an expansion led by solar photovoltaic growth, the International Energy Agency said Tuesday (10/7).

The generation capacity forecast over the next five years was “roughly the equivalent of adding China, the European Union and Japan’s total power generation capacity combined”, the IEA said.

It said solar photovoltaic growth will account for around 80% of the global increase in renewable power capacity by 2030, driven by low costs and faster permitting timeframes, followed by wind, hydro, bioenergy and geothermal.

It also said global supply chains for solar PV and the rare earth elements used in wind turbines will likely remain heavily concentrated in China, underscoring supply security risks.

China’s share of key production segments for such supply chains and elements is expected to remain at above 90% through 2030, the IEA said.

ONEOK: MB-4 To Reopen After Repairs, No Material Impact

ONEOK Hydrocarbon said it expects to resume operations at the MB-4 fractionator after repairs to the fire-struck facility at Mont Belvieu, TX, adding that no material impact was anticipated on its financials from the incident.

Four fractionation facilities at the MB-4 were impacted by an explosion reported on Monday (10/6), during a planned turnaround that caused an excess opacity event.

An update shared on Tuesday (10/7) with the Texas Commission on Environmental Quality said Mont Belvieu Frac-1, Frac-2, Frac-4, and Frac-5 were subsequently shut after the incident.

ONEOK, on its website, described the incident as a fire that occurred in the heating system of ONEOK’s MB-4 fractionators.

“Fractionation operations at the complex were promptly shut down, and the fire, which was limited to MB-4, was quickly extinguished,” it said.

ONEOK also anticipates that after completing initial safety reviews, it will resume operations of the complex, “other than the MB-4 fractionator, which will resume operations following completion of repairs”.

The company added it “does not currently anticipate that the incident will have a material effect on the company’s financial condition, results of operations or cash flows.”

While The City of Mont Belvieu said earlier there were three minor injuries from the incident, ONEOK itself reported no injuries among its employees.

Shell: Q3 Refining Margin Likely Up 30% Q-on-Q  

Shell on Tuesday (10/7) anticipated its third quarter refining margins likely surged by 30%  from the second quarter and raised its expectations for oil and gas output as well.

The Anglo-Dutch energy major,  in a quarterly outlook update, put  indicative refining margin for the July to September period at $11.6 bbl, versus $8.9 during the April to June stretch.

For chemicals, Shell estimates that the indicative refining margin will drop in the third quarter to $160 per tonne from $166 in the prior quarter.

The refinery utilization rate is expected to rise from 94% to  98% in the third quarter, from 94% in the three months before. Chemicals utilization, meanwhile, is expected to have reached 79%-83% versus the 72% reported in the previous quarter.

In the upstream division, Shell raised its third quarter expectation to 1,890 kboe/d, from 1,732 kboe/d in the prior quarter.

For key integrated gas volumes. LNG liquefaction volumes are forecast to reach 7.0 to 7.4 MT, marking an increase from 6.7 MT in the second quarter.

Overall integrated gas production was expected to have climbed to 910-950 kboe/d in the just-ended quarter, from 913 in the prior three months.

Shell is scheduled to release its full third-quarter results, subject to finalization, on October 30.

EIA: US Diesel Prices Slip 4.3cts on Week

The national average price for retail diesel fuel declined by 4.3cts as of Monday (10/6), following two consecutive weeks of modest gains, with declines seen across all U.S. regions, according to the latest data from the Energy Information Administration.

The national average for retail diesel fuel declined by 4.3cts to $3.711 gallon. That was still 12.7cts above the price from the same week last year.

Gulf Coast PADD 3 posted the largest regional drop, down by 4.9cts to $3.364 gallon from last week, and up 9.8cts year-on-year.

East Coast PADD 1 average diesel prices eased by 1.5cts to $3.735 gallon as of October 6, priced 17.2cts higher compared to last year. New England PADD 1A dipped by 0.4cts to $3.958 gallon during the same period, Central Atlantic PADD 1B fell by 1.6cts to $3.886 gallon, and Lower Atlantic PADD 1C decreased by 1.7cts to $3.656 gallon.

Midwest PADD 2 saw a weekly decline of 6.1cts to $3.670 gallon as of October 6, up 8.3cts year-on-year.

West Coast PADD 5 diesel prices slipped by 3.3cts to $4.499 gallon, standing 23.8cts above the same period last year. West Coast less California dropped by 5.3cts to $4.090 gallon, up by 24.9cts from last year, while California fell slightly by 1ct to $4.971 gallon, 22.9cts higher compared to last year.

Rocky Mountain PADD 4 prices fell by 6.1cts to $3.671 gallon, up by 5.1cts from the same week last year.

EIA: U.S. Retail Regular Gasoline Price Rises 0.6cts W-o-W

Retail regular gasoline prices rose slightly in the week ended October 6, led by a sharp increase in the U.S. Gulf Coast, according to the latest data from the Energy Information Administration showed Tuesday (10/7).

The national average for retail regular gasoline increased by 0.6cts to $3.124 gallon week-on-week and was 1.2cts lower from the same week in 2024.

Gulf Coast PADD 3 average gasoline prices climbed by 4.7cts to $2.719 gallon as of October 6, standing 0.6cts below levels seen in the same week last year.

East Coast PADD 1 gasoline price edged up by 0.1cts to $2.984 gallon in the reference week, 2.5cts under the year-ago level. Within the region, New England PADD 1A gasoline price fell 2.6cts to $3.008 gallon as of Monday, down 0.1cts year-over-year. Central Atlantic PADD 1B gasoline price dropped 3.5cts to $3.112 gallon, 7cts lower year-on-year, while Lower Atlantic PADD 1C rose 3.1cts to $2.897 gallon, 3cts below the same week last year.

Midwest PADD 2 average gasoline price increased 0.5cts to $2.933 gallon, 10.3cts below the same week of last year.

Gasoline price in Rocky Mountain PADD 4 fell 4.4cts to $3.066 gallon and was 20.5cts below last year’s level.

West Coast PADD 5 gasoline price decreased 1.2cts to $4.226 gallon as of October 6, but was 19.9cts higher year-on-year. West Coast less California gasoline price dropped 3.1cts to $3.982 gallon in the profiled week and was 35.9cts above the same period of last year.

U.S. Trade Data Unavailable Amid Government Shutdown

The monthly report on U.S. international trade in goods and services for August by the Bureau of Economic Analysis will not be published today (10/7) as the federal government shutdown entered its seventh day.

“Due to a lapse in appropriations, this website is not being updated,” the bureau announced in a note published on bea.gov on October 1.

The federal government went into shutdown after the U.S. Congress failed to pass appropriations bills or a continuing resolution to fund government agencies before the start of the new fiscal year on October 1.