#USA #El Paso #Argus Media #Diesel Prices

Argus Introduces New Diesel and Gasoline Price Assessments in El Paso

Global energy and commodity price reporting agency Argus has made a significant move by introducing new price assessments specifically for diesel and gasoline produced in El Paso, Texas. This development is part of an effort to address the rising demand for these products on the U.S. West Coast, stemming from a series of refinery closures in California.

The recent closures have resulted in nearly 285,000 barrels per day (b/d) of refining capacity being taken offline, equivalent to approximately 17% of California's total refining capabilities. This reduction in capacity has led to a shortfall in supply across the entire West Coast, thereby altering product flows into Arizona. Consequently, buyers in the region are increasingly sourcing their fuel from El Paso, which is linked through the eastern segment of the 125,000 b/d Santa Fe Pacific Pipeline system.

El Paso boasts over 300,000 b/d of nearby refining capacity and has the unique advantage of being able to access deliveries from both the Gulf Coast and southern midcontinent regions. As a result, El Paso is evolving into a crucial supply hub that connects eastern refining complexes with burgeoning demand in Arizona, western Texas, New Mexico, and even Mexico.

Looking ahead, trade and liquidity in the El Paso area are expected to grow as pipeline capacity expands. Proposed expansions aim to add up to 200,000 b/d of new westbound capacity through El Paso towards Arizona while enhancing the east-west flexibility across connected pipeline systems. These infrastructure developments are set to strengthen El Paso's position as a pivotal balancing point, aligning the surplus refining capacity found in central U.S. states with the demands of the West Coast and Arizona.

Adrian Binks, Chairman and CEO of Argus Media, articulated this shift by stating, "El Paso is evolving into the place where western demand meets eastern supply. Our new El Paso assessments bring important price discovery at the intersection of two vastly different trade hubs. This added transparency in the market will assist trading between Arizona buyers and refineries throughout the Gulf Coast and midcontinent. Moreover, it will provide valuable insights for Mexico importers, who typically utilize cross-border routes out of Texas."

The new price assessments will cover a daily evaluation of ultra-low sulfur diesel (ULSD), regular CBOB, and premium CBOB gasoline. These prices will be published both as outright figures and as differentials against the prompt U.S. Gulf Coast Colonial pipeline benchmark for each product category, thereby enriching the Argus U.S. Products report.

About Argus Media

Founded in 1970, Argus Media is a leading independent provider of market intelligence geared towards the global energy and commodity sectors. The organization offers essential price assessments, news, analytics, consulting services, data science tools, and industry conferences to demystify and illuminate complex commodity markets. With its headquarters in London and a workforce exceeding 1,500 employees, Argus operates across 32 offices located in significant commodity trading hubs around the world. Its trusted data is relied upon by companies, trading firms, and governments across 160 countries for decision-making, risk management, trading facilitation, and long-term planning. Argus has established itself as a reputable benchmark globally for the pricing of transportation, commodities, and energy.

In sum, Argus's new pricing assessments for diesel and gasoline in El Paso mark a notable advancement in price discovery, helping to align supply and demand amid ongoing market shifts and refinery dynamics.