PNW ULSD Basis Reach 5-Mo High, Spikes by 25cts on Demand


   
Kristina Davis
DTN Refined Fuels Market Reporter

   MIAMI, FL (DTN) -- Pacific Northwest ultra-low sulfur (ULSD) basis surged by 
25cts on Friday (3/27) to a 35.5cts premium over May NYMEX ULSD  futures 
contract, hitting a five-year high on firm buying interest amid supply 
tightness.

   Bids for PNW ULSD basis were heard in the market at a 35ct premium, with no 
trades confirmed at that level. The assessment was the highest since October 
24,2025 when it was at 34.5cts premium over front-month NYMEX ULSD, according 
to DTN data.

   The move was driven by firm demand, with the basis pegged at a 10.5cts 
premium to May futures contract in the previous trading session on Wednesday 
(3/26).

   Upward pressure on the  USWC refined fuel market is driven by supply 
disruption in the Strait of Hormuz as regional refiners import Middle East 
crudes and refining production has been limited.

   Refinery closures are contributing to the tightness in the market, following 
the shutdown of Valero's 145,000 bpd Benicia, California,  refinery in late 
2005 and the upcoming closure of 139,000 bpd Phillipps 66 Wilmington refinery 
in April. 

    

    




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