Winter Flight Outages Hit Midwest and NYH Jet Fuel Basis


   
Miguel E. Andujar
DTN Refined Fuels Market Reporter

   DAVENPORT, FL (DTN) -- Midwest and New York Harbor jet fuel differentials 
fell sharply Monday (2/23) as thousands of flights were disrupted by a blizzard 
that covered the Mid-Atlantic to northern New England.

   Group 3 jet fuel traded at a 50cts discount to March NYMEX ULSD futures, 
marking the weakest level since December 9, 2025, when the differential was 
assessed at a 52.50cts discount, according to DTN data.

   Chicago jet fuel weakened to a 37cts discount to March ULSD futures from an 
11cts discount in the prior session.

   "The selloff in jet fuel was mainly due to the flight cancellations, which 
also weighed on the Midwest market," a person familiar with the market said.

   Jet fuel basis in the New York Harbor market also dipped for the second 
consecutive day, dropping by 4cts to a 26.50cts discount against the 
front-month ULSD futures contract on the day. 

   ULSD also softened, though losses were more moderate. Group 3 ULSD widened 
to a 30.5cts discount to March ULSD futures from a 27.50cts discount previously 
and traded in a range out to 35cts back during the session. Chicago ULSD 
widened to a 24cts discount from a 13.50cts discount in the previous session.

   Winter Storm Hernando, which began Sunday, triggered massive aviation 
outages, pressuring distillate markets across the region.

   According to FlightAware's live cancellation tracker, 6,164 flights were 
canceled nationwide on Monday. As of Tuesday, more than 2,000 additional 
flights had been canceled across the United States.




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