USGC Jet Fuel Basis Sets New 15-Month Low


   
Miguel E. Andujar
DTN Refined Fuels Market Reporter

   DAVENPORT, FL (DTN) -- U.S. Gulf Coast (USGC) jet fuel basis extended its 
decline Wednesday (7/8), falling to a fresh 15-month low, as rallying futures 
of ultra-low sulfur diesel (ULSD) continued to outpace movements in the 
physical market.

   USGC jet fuel basis was assessed at a 61.75cts discount to August NYMEX ULSD 
futures, weakening 8cts from Tuesday's 53.75cts discount and reaching its 
lowest level since March 31, 2025, when it was assessed at a 90.25cts discount, 
DTN Energy data showed.

   Front-month ULSD futures continued higher Wednesday, settling at $3.7243 
gallon, up 42.26cts, or 12.8%, from Tuesday's settlement of $3.3017 gallon.

   The U.S. Energy Information Administration reported Wednesday that Gulf 
Coast jet fuel inventories declined by 200,000 bbl to 16.6 million bbl during 
the week ended July 3. Despite the weekly draw, inventories remained 1.6 
million bbl above the level reported during the corresponding week in 2025.

   The wider discount reflects ULSD futures rising faster than Gulf Coast 
physical jet fuel values, keeping pressure on basis levels.




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