Group 3 ULSD Basis Falls 13.5cts as Futures Weakens


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) - Midwest ultra-low sulfur diesel (ULSD)  spot basis 
values posted broad losses across regional pipeline networks and Midcontinent 
hubs on Tuesday (10/27) pressured by weaker distillate futures.

   Group 3 ULSD basis recorded the largest decline in the regional diesel spot 
market, falling 13.5cts on the day to settle at a 3.5cts gallon discount to the 
November NYMEX ULSD contract versus the prior day's premium of 10cts.

   Across eastern pipeline channels, Buckeye Complex ULSD basis dropped 12cts 
to a 3cts gallon premium over November futures, while Wolverine ULSD basis fell 
11cts to trade at a 3cts gallon premium.

   In Chicago, ULSD basis slipped 5cts on the session to trade at parity with 
November futures.

   In regional jet fuel trading, Group 3 jet fuel basis dropped 10cts to settle 
at a 30cts gallon premium over futures. Bucking the broader spot market 
weakness, Chicago jet fuel basis advanced 5cts on the day to trade at a 15cts 
gallon discount.

   The tumble in spot prices came alongside weakness in benchmark energy 
futures. NYMEX November ULSD futures eased $0.1368, or 2.79%, to finish at 
$4.7752 gallon after reaching an intraday peak of $4.9541 gallon.




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