Midwest Diesel, Jet Fuel Basis Rise as Futures Fall


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- Chicago and Group 3 ultra-low sulfur diesel (ULSD) 
basis firmed Wednesday (7/1) as NYMEX futures slid and inventory data for the 
Midwest showed mixed balances for distillate products.

   Group 3 ULSD basis posted the sharpest move, strengthening 8cts gallon on 
the day to a discount of 27cts gallon to the August NYMEX ULSD benchmark 
contract. Chicago ULSD basis also strengthened, narrowing 3cts to a 32cts 
gallon discount.

   In the jet fuel market,  Chicago basis was talked 4.5cts stronger at a 52cts 
gallon discount to the front-month NYMEX ULSD futures contract. Group 3 jet 
fuel differentials also firmed by a more modest 1ct to a 29cts gallon discount 
against the same benchmark.

   The U.S. Energy Information Administration reported on Wednesday a 300,000 
bbl a weekly drop in regional jet fuel balances to 7.5 million bbl for the week 
ended June 29.

   Conversely, broader PADD 2 distillate fuel oil inventories rose by 600,000 
bbl on the week to reach a total of 27.8 million bbl. Regional distillate 
imports averaged 21,000 bpd, up by 16,000 bpd on the week to help fuel the 
inventory build.

   In futures trading, the NYMEX ULSD contract for August delivery edged down 
$0.0989 to settle at $3.2179 gallon.

    




(c) Copyright 2026 DTN, LLC. All rights reserved.