Chicago Jet Basis Flips to Premium, Hits 5-Mo High


   
Miguel E. Andujar
DTN Refined Fuels Market Reporter

    

   DAVENPORT, FL (DTN) -- Chicago jet fuel basis hit a 5-month high Friday 
(3/27), after climbing by 46cts to a 5cts premium over  May NYMEX ULSD futures 
- flipping from a 41cts discount recorded the prior session -on firm 
distillates demand and higher Gulf Coast pricing.

   Jet fuel basis in Chicago traded to a premium to front-month NYMEX ULSD 
futures for the first time since November 11, 2025, when it was assessed at a 
1ct premium, DTN data showed. The move marks the highest level for 2026 and a 
sharp rebound of roughly 70cts from the year's low on March 18.

   "Chicago is just getting dragged higher by the Gulf right now," a source 
familiar with Midwest refined product trading said. "With USGC set on export 
economics and cracks this strong, Midwest has to reprice or it risks losing 
barrels."

   Front-month ULSD futures have rallied significantly, climbing from $2.5960 
on Feb. 27 to $4.5277 in recent trade, supported by escalating tensions tied to 
the U.S.-Israel-Iran conflict that has lifted broader middle distillate values. 
Distillate crack spreads have also surged, with the prompt crack trading above 
$90 bbl, the highest level since early April 2022.

   Market participants said stronger Gulf Coast pricing tied to export demand 
is effectively setting the marginal value for distillates, forcing inland 
markets like Chicago to bid higher to retain supply and remain competitive 
within the broader distillate market.

    




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