SF Diesel, CARBOB Basis Fall on Softer Market


   
Kristina Davis
DTN Refined Fuels Market Reporter

   MIAMI, FL (DTN) -- San Francisco ultra-low sulfur diesel (ULSD) basis 
weakened Wednesday (6/24) as improving regional distillate supplies and softer 
market sentiment continued to pressure West Coast fuel values.
The San Francisco ULSD basis fell by 7cts to a 2cts discount to July NYMEX ULSD 
futures after trading at minus 2cts Wednesday, down from Tuesday's (6/23) last 
assessed value at a 5cts premium.

   Distillate fuel oil inventories in the West Coast  increased by 1.3 million 
bbl to 11.3 million bbl during the week ended June 19 and were 1 million bbl 
higher than a year earlier, Energy Information Administration data released on 
Wednesday showed. Distillate imports climbed by 35,000 bpd to 36,000 bpd on the 
week and were 31,000 bpd above the same week last year.

   San Francisco ULSD aside, CARBOB gasoline basis in San Francisco also 
softened Wednesday, with regular CARBOB trading first at a 35cts premium before 
a later trade was confirmed at a 31cts premium to July NYMEX RBOB futures. The 
final trade brought the San Francisco CARBOB basis down 8cts from the previous 
session, reflecting improving gasoline supply conditions across the U.S. West 
Coast.
The moves in San Francisco CARBOB came as EIA data showed motor gasoline 
inventories in the PADD 5 region rising for a fifth consecutive week, with a 
900,000 bbl build to 28.9 million bbl during the week ended June 19. Those 
stocks were also  200,000 bbl year-ago levels. PADD 5 gasoline imports fell by 
28,000 bpd on the week to 68,000 bpd and were 77,000 bpd below the same week in 
2025.




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