LA Diesel Basis Dips 31cts on Weaker Spot Trade


   
Kristina Davis
DTN Refined Fuels Market Reporter

   MIAMI, FL (DTN) -- Los Angeles ultra-low sulfur diesel (ULSD) basis weakened 
Friday (6/5), retreating sharply after a lower-priced trade was confirmed in 
the spot market despite ongoing tightness in West Coast distillate supplies.
Los Angeles ULSD traded at a 12cts premium to July NYMEX ULSD futures, down by 
31cts from Thursday's last assessed level, according to DTN data. The decline 
marked a reversal from the elevated premiums seen across the market in recent 
weeks as refinery outages and reduced regional refining capacity supported 
diesel values.
The move lower also comes as regional distillate inventories remained 
relatively tight. Distillate fuel oil inventories in PADD 5 were unchanged at 
10 million bbl in the week ended May 29, according to the Energy Information 
Administration's Weekly Petroleum Status Report. Stocks were 200,000 bbl lower 
than the same week last year.
PADD 5 distillate imports fell by 28,000 bpd to 12,000 bpd during the reporting 
week and were unchanged from the same period in 2024. The combination of low 
inventory levels and limited import volumes has continued to underpin the West 
Coast diesel market despite Friday's decline in spot basis value




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