LA Jet Fuel Basis Jumps to 90cts on Tight Supply


   
Kristina Davis
DTN Refined Fuels Market Reporter

   MIAMI, FL (DTN) -- The basis for prompt Los Angeles jet fuel strengthened 
further on Wednesday (4/15), trading at a 90ct premium above May NYMEX ULSD 
futures, up by 15cts on the day as demand for the product remained firm amid 
tightening regional supply.
The latest increase follows a sharp move higher on Tuesday (4/14), when the Los 
Angeles jet fuel basis jumped by 32cts to a 75ct premium above the May NYMEX 
ULSD futures contract. Market participants cited stronger buying interest and 
constrained supply availability as key drivers behind the back-to-back gains.
Support for jet fuel values has also been tied to ongoing refinery capacity 
reductions in California. The recent shutdown of Phillips 66's 139,000 bpd Los 
Angeles refinery has already removed significant production from the region, 
while Valero's 145,000 bpd Benicia refinery is scheduled to cease operations 
later in April, further tightening supply expectations along the West Coast.




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