Group 3 ULSD Basis Strengthens as Planting Season Nears


   
   CRANBURY, N.J. (DTN) -- Basis for ultra-low sulfur diesel fuel for the 
prompt Magellan Pipeline cycle in Oklahoma in the Group 3 spot market 
strengthened 100 points to a 325-point discount to May futures on the New York 
Mercantile Exchange on Monday on an expected pickup in demand.

   DTN meteorologists said a warming trend should reemerge in the Midwest in 
the middle of next week following severe weather midweek accompanied by cold 
weather that lingers through the weekend. The warming trend is forecast to 
continue through the end of April, providing an opportunity for farmers to 
plant, supporting demand for diesel fuel.

   The Energy Information Administration last reported PADD 2 distillate fuel 
inventory at 31.476 million bbl as of April 5, 2.743 million bbl more than the 
comparable week a year ago.

    

    

   Brian L. Milne, 1.732.768.0260, brian.milne@dtn.com, www.dtn.com.




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