Midwest Jet Fuels Stabilize after Midweek Volatility


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- The basis for jet fuel in the Midwest stabilized on 
Thursday (6/4) from a recent spate of volatility as traders assessed the impact 
of fluctuating pipeline shipments and shifting regional demand ahead of the 
peak summer travel season.

   The basis for Chicago jet fuel was heard at a discount of 95cts gallon to 
July ULSD on NYMEX, widening by a mere 5cts from the 90cts level seen late on 
Wednesday (6/3).

   In Group 3, the jet fuel basis strengthened to a discount of 90cts gallon 
against the NYMEX benchmark, compared to the prior day's level of 95cts.

   The muted action follows double digit price moves in Midwest jet fuels 
earlier in the week as refinery outages and tight pipeline space created a 
temporary supply crunch before logistical bottlenecks eased.

   The steadying of the basis also came after the U.S. Energy Information 
Administration (EIA) reported on Wednesday (6/3) inventory data for the week 
ended May 29 that showed Midwest jet fuel stocks at 6.8 million bbl, up 800,000 
from the prior week and 500,000 bbl higher from a year ago.

   Distillate fuel oil inventories in PADD 2 rose by 1.4 million bbl on the 
week to 25 million bbl, the EIA data showed. On the year, they were 3000,000 
bbl lower.




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