NY Harbor, USGC Jet Fuel Basis DN on Air Traffic Cuts


   
Miguel E. Andujar
DTN Refined Fuels Market Reporter

   DAVENPORT, FL (DTN) -- Jet fuel spot prices in New York and the Gulf Coast 
dropped to their lowest levels Thursday (11/13) following a drastic reduction 
in flights and a decline in air traffic, driven by the record-long government 
shutdown.

   New York Harbor jet fuel basis traded at a 12.50 cts discount to December 
ULSD on Thursday, hitting its lowest price since October 16. So far in 
November, NY Harbor basis has dropped 9.50cts, according to DTN data. 

   Meanwhile, U.S. Gulf Coast jet fuel traded at a 24.25cts discount to 
December ULSD futures contract, down 10.50cts since November 1. 

   Last week, the U.S. Federal Aviation Administration announced plans to 
reduce air traffic in 40 high-volume areas by 10% to cope with shortages of air 
traffic controllers, affecting major hubs in New York and Texas. Both regions 
account for almost 17% of total U.S. jet fuel consumption, according to the 
most recent data from the U.S. Energy Information Administration (EIA).

   Despite the downward pressure on jet fuel prices in the New York Harbor and 
the U.S. Gulf Coast, inventory levels in the two regions have shown mixed 
trends.

   EIA data released Thursday showed that East Coast jet fuel stocks eased by 
100,000 bbl to 9.2 million bbl in the week ending November 7, which is 1.5 
million bbl below the volume reported in the same week last year.

   Meanwhile, U.S. Gulf Coast inventories increased by 900,000 bbl to 14.5 
million bbl, the largest build since the end of August of this year, and up by 
200,000 bbl from 14.3 million bbl in the same week last year, confirming that 
supply has remained strong even as airline operations have been reduced.




(c) Copyright 2025 DTN, LLC. All rights reserved.