East of Rockies, West Coast Spot Jet Fuel End Mostly Lower
OAKHURST, N.J. (DTN) --- Cash jet fuel basis in east of the Rockies and West
Coast trade hubs remained mixed Wednesday, with prices varying on the session
while nearby delivery month New York Mercantile Exchange ULSD futures settled
Nearby delivery month ULSD futures settled down over a penny, falling back
from a five-month high reached early in the session. Energy Information
Administration data for the second week of April detailed a
smaller-than-expected 362,000 bbl draw in domestic distillate supplies as
demand for the fuel continued lower, sliding 11.3% on the week and down 23%
NYMEX May West Texas Intermediate crude futures settled 29cts lower at
$63.76 bbl while nearby delivery month ULSD futures posted a 1.3cts loss to
settle at $2.0692 gallon.
New York Harbor jet fuel basis firmed 1.5cts, trading for prompt Buckeye
Pipeline shipment at a 3.25cts futures discount. With the loss on the print,
the price gain was limited to 0.20cts at $2.0367 gallon.
Gulf Coast 54-grade basis continued to strengthen, firming 0.5cts to trade
at an 8.75cts futures discount in front of 23rd cycle Colonial Pipeline
scheduling. Lower futures pressed spot price down 0.80cts to $1.9817 gallon.
Chicago 51-grade maintained a 3cts discount to May ULSD futures for third
cycle east Chicago delivery, tracking futures 1.3cts lower to $2.0392 gallon.
Group 3 Q-grade held at a 5.25cts futures discount for prompt cycle Magellan
Pipeline offline supply, pacing futures down 1.3cts to $2.0167 gallon.
Los Angeles April LAX pipeline jet fuel traded 9.5cts over the May ULSD
contract, down 1.5cts in basis while May LAX pipeline jet fuel traded at a
7.5cts premium to the June ULSD contract, sources said.
Prompt jet fuel in San Francisco and the Pacific Northwest held at parity to
EIA data showed total jet fuel inventories rose for a second week, up
451,000 bbl to 42.366 million bbl in the week ended April 12, an 8.4%
year-over-year supply surplus.
Domestic jet fuel production declined 8,000 bpd to 1.714 million bpd last
week, down 2.3% from the same week in 2018. Jet fuel imports jumped 111,000 bpd
to 278,000 bpd while implied demand increased 229,000 bpd to 1.674 million bpd.
East Coast PADD 1 supply dropped 594,000 bbl to 10.394 million bbl in the
week-ended April 12 while Midwest PADD 2 stocks declined 79,000 bbl to 7.503
Gulf Coast PADD 3 jet fuel inventories rose 1.295 million bbl to 14.053
million bbl, leaving stocks at the highest level in five weeks while West Coast
PADD V supply fell 158,000 bbl to 9.509 million bbl.
Dawn Gallagher, 1.732.531.4451, firstname.lastname@example.org, www.dtn.com. (c)
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