LA Jet Fuel Basis Falls 15cts Amid Tight Supplies


   
Kristina Davis
DTN Refined Fuels Market Reporter

   MIAMI, FL (DTN) -- The basis for prompt Los Angeles jet fuel weakened 
Thursday (4/30), falling by 15cts to a 75cts premium above May NYMEX ULSD 
futures, amid tight supplies. The narrower basis retreated further from last 
week's record highs after a brief rebound earlier in the week.

   Separately,  Los Angeles diesel traded at a 13ct premium to June NYMEX ULSD 
futures, down by 12cts on the session, signaling easing strength across the 
middle distillate complex.
The latest decline follows Tuesday's recovery that lifted jet fuel to a 95cts 
premium, after Los Angeles jet fuel surged to a historic $1.10 gallon premium 
last week before shedding 25cts at the start of the week.

   Despite the pullback, values remain elevated by historical standards, 
underscoring persistent tightness in the West Coast market.

   Jet fuel stocks in the West Coast slipped by 200,000 bbl to 10.6 million bbl 
last week, while imports of the same product dropped by 87,000 bpd to 43,000 
bpd in the week ended April 24, according to the Energy Information 
Administration data released Wednesday (4/29). 
Traders continue to point to constrained refining capacity as the core driver. 
The shutdown of Phillips 66's 139,000 bpd Los Angeles refinery earlier this 
year, combined with the planned closure of Valero's 145,000 bpd Benicia 
refinery, has removed significant supply from the regional system and reduced 
operational flexibility.
With the summer travel season approaching, market participants say volatility 
is likely to remain the defining feature of the West Coast jet fuel market, 
where even modest operational hiccups can quickly swing prices higher or lower 
in a system running with little margin for error.

   Jet fuel stocks in the West Coast slipped by 200,000 bbl to 10.6 million bbl 
last week, while imports of the same product dropped by 87,000 bpd to 43,000 
bpd in the week ended April 24, according to the Energy Information 
Administration data released Wednesday (4/29). 




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