USGC ULSD Basis Hit 1-Mo High, Despite Ample Stocks


   
Maria Eugenia Garcia
DTN Refined Fuels Market Reporter

   HOUSTON, TX (DTN) -- Basis for ultra-low sulfur diesel fuel (ULSD) 
strengthened on Wednesday (7/29), climbing to its highest level in a month 
despite a weekly build in U.S. distillate inventories last week.

   USGC ULSD basis was assessed at a 0.85cts premium to August New York Harbor 
ULSD futures, compared with a discount of 0.5cts a day earlier, according to 
DTN data.

   The assessment marked the strongest USGC ULSD basis relative to the New York 
Harbor benchmark since June 30, when it was assessed at a 1.0cts premium.

   U.S. Gulf Coast cash market bids for ULSD were heard at 0.50cts premium, 
while offers were indicated at 1.0cts premium, according to market sources.

   The Energy Information Administration reported on Wednesday that distillate 
fuel oil inventories, the feedstock for diesel, rose by 2.6
million bbl to 45.7 million bbl during the week ended July 24. However, they 
remained 400,000 bbl below the 46.1 million bbl reported during the same week 
last year.




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