RCC Energy Market Update:

RCC ENERGY UPDATE: Wednesday 3/21/2018 5:00 PM


  • Diesel up 5.42 cents
  • Gasoline up 4.63 cents
  • Crude up $1.63 cents @ $65.17/bbl


  • Diesel up 5.30 cents
  • Gasoline up 4.40 cents


  • Propane up 0.375 of a cent


Crude –

  • +2.55MB expected
  • -2.6MB actual

Diesel –

  • -1.74MB expected
  • -2.0MB actual

Gasoline –

  • -2.0MB expected
  • -1.7MB actual

Propane –

  • -2.1MB actual
ULSD inventories: Midwest

Spring time fever! Even though the grass hasn’t turned green yet, the warmer weather is turning focus from winter diesel fuel to spring fieldwork. Over the past few years, the US has come out of the winter with extremely high ULSD inventories which has provided plenty of supply for spring demand. This year, lower inventory levels throughout our core marketing regions could provide a more challenging scenario this spring.

Midwest inventory levels are 3M bbls lower this year compared to last year. The Magellan Pipeline system, a major portion of Padd 2 inventories are 1.5M bbls lower than last year.


Basis thoughts: Over the past few months, basis in the Midwest has been trending higher than the historical average by $0.02-$0.04. The expectation is for this pattern to continue as we move into spring as increasing demand and tighter inventories are likely to support prices.