ULSD Basis in Houston Strengthens after Recent Weakness


   
   CRANBURY, N.J. (DTN) -- Basis for ultra-low sulfur diesel fuel at the 
Houston origin of the Colonial Pipeline in the Gulf Coast spot market 
strengthened 300 points to a 23.75cts discount to January futures on the New 
York Mercantile Exchange Monday afternoon.

   The post-holiday gain in basis, which remains weak historically, is realized 
as distillate fuel inventory in PADD 3 was last measured 755,000 bbl less than 
year ago at 41.445 million bbl as of Nov. 17, according to Energy Information 
Administration data.

   For PADD 1C Lower Atlantic states, a region dependent on PADD 3 refinery 
production, distillate inventory totaled 9.229 million bbl as of Nov. 17, an 
18-month low, and 2.307 million bbl below year ago.

    

    

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




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