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 
lower.

   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% 
year-over-year.

   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 
the basin.

   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 
million bbl.

   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, dawn.gallagher@dtn.com, www.dtn.com. (c) 
2019 DTN. All rights reserved.