MARKETWIRE ALERTS

MARKETWIRE ALERTS 

MarketWire Afternoon News for October 9^th

Updated at 5:00 PM ET 

HEADLINES:

–Chevron El Segundo Refinery Reports Emergency Flaring

— WTI Falls to $61 on Israel-Hamas deal, USGC Supply Build

— EIA: Higher China Crude Stockpiling Eased Global Glut

— U.S. Imposes 4th Round of Sanctions on Iranian Oil Trade

— Analysis: EIA Sees USCG Stocks Beating Refinery Runs

— CEC: California Gasoline Stocks Slip 67K Bbl on Week

— CEC: California Diesel Stocks Fall 275K Bbl Wk-on-Wk

— EIA reports 80Bcf Injection into US NatGas Storage Last Wk

— ARM, PIMCO Greenlight $2.3B Mustang Express Pipeline

NEWS:

Chevron El Segundo Refinery Reports Emergency Flaring

Chevron Products Co. reported an emergency flaring event at its 269,000 bpd El Segundo, California, refinery that began at 12:00 a.m. PT on October 9, according to a filing with the South Coast Air Quality Management District.

The cause of the flare was listed as emergency flaring, with no estimated stop time available as of Thursday (10/9) afternoon.

This marks the third flaring incident at Chevron’s El Segundo facility in recent months. The refinery previously reported flaring on September 7 attributed to a startup/shutdown event and another in early August linked to unplanned maintenance.

WTI Falls to $61 on Israel-Hamas deal, USGC Supply Build

Oil futures tumbled almost 2% Thursday (10/9), reversing gains from last week. The decline came after Israel and Hamas signed a ceasefire and hostage return deal, easing some of the geopolitical risk that had provided support to crude markets.

The bearish sentiment was also fueled by data showing crude inventories ballooning on the U.S. Gulf Coast last week. This potentially creates a regional supply glut, even as refiners aggressively process crude at high run rates.

NYMEX-traded WTI crude for November delivery settled down $1.04, or 1.7%, to $61.51 bbl.  Just a day ago, WTI hit a one-week at $62.92, rebounding from last week’s four-month low of $60.40 pressured by worries of oversupply.

ICE Brent for December delivery slumped $1.08 to $65.17 bbl. On Wednesday (10/8), Brent scaled a one-week peak of $65.54, rebounding from the four-month trough of $64 seen a week ago.

The drop in oil futures weighed across the NYMEX petroleum complex.

November RBOB gasoline futures fell by $0.0300 to $1.8795 gallon, and front-month ULSD futures lost $0.0145 to trade at $2.2768 gallon.

The U.S. dollar index jumped 0.540 points to 99.18, reaching its highest since late July against a basket of foreign currencies.

Oil prices began Thursday steadily as the market initially took  the developments in Gaza in its stride. But as the day progressed, heavy selling set in.

Weekly inventory data from the Energy Information Administration, meanwhile, showed U.S. commercial crude stocks rising by 3.7 million barrels to 420.3 million bbl  during the week ended October 3.

Crucially, the surge was heavily concentrated in the U.S. Gulf Coast (PADD 3), where stocks have jumped more than 10 million bbl in just two weeks, including a 6.2 million bbl jump last week alone.

The rapid build is highly unusual as Gulf Coast inventories typically draw down over the summer months and into fall as refiners try to meet fuel demand.

EIA: Higher China Crude Stockpiling Eased Global Glut

China’s increase of around 900,000 bpd in crude stockpiling between January and August helped offset a global supply glut, keeping benchmark Brent bobbing at between $68 and $69 bpd, the U.S. Energy Information Administration (EIA) said in a review Thursday (10/9).

The agency estimated that world petroleum inventories rose by an average of 1.8 million bpd in the second and third quarters of 2025, as crude production from countries both within and outside OPEC+ outpaced global demand growth.

“The stock builds in China limited the downward price pressure we would otherwise expect to see with growing inventories, keeping the Brent crude oil spot prices in a relatively tight range around $68 per barrel in the second and third quarters of 2025,” the EIA said in the review posted on the “Today in Energy” column of its website.

The agency estimated that China’s stockpiling alone averaged 1.1 million bpd between April and August.  

“Similar levels of global inventory growth would typically put downward pressure on crude oil prices; however, the price of Brent increased slightly during this period,” the EIA noted.

It estimated total liquid fuels inventories in non-OECD countries, including China, grew by an average of 0.9 million bpd from January through August 2025.

But in those eight months, some 0.9 million bpd on the average was added to crude and condensate inventories in China alone, accounting for most of the estimated global inventory builds of 1.4 million bpd for January to August.

The EIA said it assessed the Chinese stockpiling based on imports, exports, refining, and oil inventory data from third-party and official sources, since China itself did not officially report its oil inventories.

“Although our estimates are based on limited information, they support the idea that inventory growth in China was not available for trade on the global market, supporting crude oil prices,” the EIA said.

The agency maintained its Brent price forecast published in its Short-Term Energy Outlook for October, citing an average of $52 bbl in the first quarter of 2026 versus the September average of $68.

U.S. Imposes 4th Round of Sanctions on Iranian Oil Trade

The United States is targeting over 50 facilitators of Iranian oil and liquefied petroleum gas sales and shipments, including China-based refineries, in a fourth round of sanctions imposed by the Trump administration, the Treasury Department announced Thursday (10/9).

“OFAC is intensifying its efforts against Iran’s petroleum and petrochemical exports by sanctioning over 50 individuals, entities, and vessels,” the department said, referring to its Office of Foreign Assets Control (OFAC).

“These actors have collectively enabled the export of billions of dollars’ worth of petroleum and petroleum products, providing critical revenue to the Iranian regime and its support for terrorist groups that threaten the United States,” it added.

Aside from Iran, OFAC has also sanctioned on Russian oil over the Ukraine war and Venezuelan oil to pressure for democratic outcomes in the Latin American country.

The action against Tehran builds on earlier sanctions from July and August where the Trump administration targeted China-based refineries it said were purchasers and major enablers of Iranian oil.

The latest actions directly target what the Treasury described as key commercial actors responsible for moving Iran’s oil and liquefied petroleum gas into global markets.

In the Middle East, the core of the illicit network centers on UAE-based entities such as Amita Petrochemical Trading, Markan White Trading Crude Oil Abroad Co., and Slogal Energy DMCC.

These firms are charged with facilitating the sale and shipment of Iranian LPG and petrochemicals, coordinating multi-million-dollar transactions on behalf of Iran’s state-owned broker, Persian Gulf Petrochemical Industry Commercial Co.

Crucially, the Treasury also reached directly into China’s energy infrastructure by sanctioning the demand side. The major independent refinery, Shandong Jincheng Petrochemical Group Co, was targeted for having purchased millions of barrels of Iranian crude oil since 2023.

Further, Rizhao Shihua, a Chinese terminal operator at Qingdao Port, was sanctioned for its role in offloading Iranian crude oil shipments, providing a vital logistics link for Tehran’s sanctioned National Iranian Oil Company.

OFAC said sanctions have also been placed on a “shadow fleet” of nearly two dozen vessels and their associated owners and operators — such as the Gas Dior and Max Star — which were actively used to ferry Iranian crude oil and LPG to destinations in China, Sri Lanka, and Bangladesh.

Analysis: EIA Sees USCG Stocks Beating Refinery Runs

U.S. crude oil inventories are ballooning on the Gulf Coast, potentially creating a regional supply glut even as refiners aggressively process crude at high run rates, latest Energy Information Administration (EIA) data indicates.

The divergence suggests that robust domestic production and a well-supplied global market are overwhelming strong seasonal demand for crude, potentially capping the recent recovery in oil prices.

WTI’s front-month November delivery contract on NYMEX hit a four-month low of $60.40 last week, precisely on oversupply worries, though that selloff was influenced more by rising OPEC+ production.

The domestic production story is a different tale and could cap this week’s rebound in crude prices that took WTI to a one-week high of $62.92 on Wednesday (10/8).

EIA weekly data shows U.S. commercial crude stocks rising by 3.7 million barrels to 420.3 million barrels during the week ended October 3.

Crucially, the surge was heavily concentrated in the U.S. Gulf Coast (PADD 3), where stocks have jumped more than 10 million bbl in just two weeks, including a 6.2-million bbl jump last week alone.

The rapid build is highly unusual. Gulf Coast inventories typically draw down over the summer months and into fall as refiners try to meet fuel demand.

In fact, despite an uptick in refining operations, PADD 3 crude stocks have now rebounded to 244.5 million barrels, already 2% higher than the same week last year, after having troughed exceptionally early back in June.

Refinery demand remains strong, fueled by healthy margins that the EIA estimates doubled year-on-year for gasoline and diesel in the third quarter.

Over the last four weeks, net crude oil inputs averaged 16.34 million bpd, a 2% increase over 2024 despite a drop in available refining capacity. Last week’s input peaked at 16.3 million bpd, more than 700,000 bpd higher than a year ago.

However, this demand has clearly been dwarfed by supply. The massive Gulf Coast inventory build implies that booming domestic production is flooding the system.

Weekly EIA production data shows only a 250,000-bpd year-on-year rise over the last month, but a much higher positive adjustment factor hinted the agency was still underestimating production in its weekly report.

That was reflected by another report that it publishes – the Short-Term Energy Outlook – where the EIA issued an upward revision on output, pegging July production at a record 13.64 million bpd.

The ongoing stock concentration in the nation’s central oil hub underscores a growing supply imbalance that could signal a wider market softening, despite strong refinery performance.

CEC: California Gasoline Stocks Slip 67K Bbl on Week

California gasoline inventories edged lower in the week ending October 3, with Northern California showing the sharpest draw, according to the California Energy Commission’s Weekly Fuels Report released Thursday (10/9).
Statewide gasoline stocks, including CARB reformulated, non-California, and blending components, fell by 67,000 bbl to 11.363 million bbl, up 11% from 2024.
Northern California gasoline inventories dropped by 398,000 bbl to 4.880 million bbl, 6% above last year. CARB reformulated gasoline in the north fell by 460,000 bbl to 2.938 million bbl, while non-California gasoline rose by 196,000 bbl to 333,000 bbl, and blending components fell by 134,000 bbl to 1.609 million bbl.
Southern California gasoline inventories climbed by 331,000 bbl to 6.483 million bbl, up 15% from the previous year. CARB reformulated gasoline in the south rose by 176,000 bbl to 2.559 million bbl, non-California gasoline increased by 37,000 bbl to 780,000 bbl, and blending components rose by 118,000 bbl to 3.144 million bbl.
Statewide gasoline production climbed by 378,000 bbl to 6.045 million bbl, roughly steady compared with 2024.
Southern California gasoline production led the increase, rising by 213,000 bbl to 4.032 million bbl, down 2% year over year. CARB reformulated gasoline production in the south climbed by 343,000 bbl to 3.630 million bbl, while non-California gasoline production fell by 130,000 bbl to 402,000 bbl.
Northern California gasoline production rose by 165,000 bbl to 2.013 million bbl, up slightly from 2024. CARB reformulated gasoline in the north slipped by 36,000 bbl to 1.597 million bbl, while non-California gasoline rose by 201,000 bbl to 416,000 bbl.

CEC: California Diesel Stocks Fall 275K Bbl Wk-on-Wk

California diesel inventories moved sharply lower in the week ending October 3, led by steep declines in Northern California, according to the California Energy Commission’s Weekly Fuels Report released Thursday (10/9).
Statewide diesel stocks, including CARB and other grades, fell by 275,000 bbl to 2.911 million bbl in the reference week, though still up 8% from 2024 levels.
Northern California diesel inventories dropped by 165,000 bbl to 1.162 million bbl for the week ending October 3 but held 2% above the prior year. CARB diesel in the north fell by 209,000 bbl to 734,000 bbl, while other diesel climbed by 44,000 bbl to 428,000 bbl.
Southern California diesel inventories declined by 110,000 bbl to 1.749 million bbl, 16% above last year. CARB diesel in the south edged down by 1,000 bbl to 916,000 bbl, while other diesel fell by 109,000 bbl to 833,000 bbl.
Statewide diesel production fell by 90,000 bbl to 1.405 million bbl, 16% below 2024 output.
Diesel production in Southern California led the state, climbing by 155,000 bbl to 1.035 million bbl, roughly flat compared to a year ago. CARB diesel output in the south fell by 49,000 bbl to 536,000 bbl, while other diesel rose sharply by 204,000 bbl to 499,000 bbl.
Northern California diesel production dropped by 65,000 bbl to 460,000 bbl, down 28% from 2024. CARB diesel output in the north fell steeply by 508,000 bbl to 28,000 bbl, other diesel production climbed by 443,000 bbl to 432,000 bbl.

EIA reports 80Bcf Injection into US NatGas Storage Last Wk

Energy Information Administration data released midmorning Thursday (10/9) show an 80 billion cubic feet injection into U.S. natural gas storage to 3.641 trillion cubic feet in the week ended October 03. Natural gas in U.S. storage is 0.6% higher than last year and 4.5% above the five-year average of 3.484 Tcf.

ARM, PIMCO Greenlight $2.3B Mustang Express Pipeline

ARM Energy Holdings announced Thursday (10/9) it was proceeding with the 236-mile, 42-inch diameter Mustang Express Pipeline costing $2.3 billion to connect major Texas supply hubs to the rapidly expanding Gulf Coast LNG export market.

The financial investment decision (FID) reached with financial partner Pacific Investment Management Company (PIMCO) will allow ARM to move ahead with the project engineered to move 2.5 billion bcf/d of gas, the company said in a statement.

The project, scheduled for completion in late 2028 or early 2029, will create a new natural gas artery in Texas to provide additional capacity to meet the feed gas requirements of new liquefaction facilities.

The Mustang Express Pipeline will feature three stages of development: The 55-mile Cougar Lateral line from the Tres Palacios Storage to Katy Hub in Katy; the 178-mile Mustang Mainline from Katy Hub to Port Arthur; and the 3-mileGolden Triangle / Spindletop Storage Lateral around Port Arthur.

The project will secure its commercial foundation with an anchor shipper commitment from Sempra Infrastructure, which itself recently reached a FID with a consortium of partners to utilize the transportation capacity to supply its Port Arthur LNG Phase 2 project.

“By linking two of the most prolific natural gas-producing regions in the U.S. directly to LNG export facilities in Texas, we are helping ensure a reliable supply of natural gas for liquefaction and export with a route that crosses four storage facilities,” ARM CEO Zach Lee said.

ARM also plans to conduct an open season for the remaining available capacity later this month, a move that will allow other market participants to secure transportation on the vital route connecting prolific producing regions to overseas markets.