Los Angeles Cash Jet Fuel Basis Swings to Premium vs MERC


   
   OAKHURST, N.J. (DTN) --- Cash jet fuel basis in Los Angeles spiked Thursday, 
rallying over a nickel to the highest level in over six months on short 
covering in thin trade, sources said, as regional supply and production fell 
last week.

   While state data show overall jet fuel production at a four-week high 1.013 
million bbl, the 5% week-on-week gain was recorded in the northern part of 
California with output to the south dropping to about half of the overall total.

   California Energy Commission data showed jet fuel stocks in the south 
dropped last week while gaining to the north, which lifted overall supply 2% to 
2.987 million bbl, a 14.5% year-over-year supply surplus.

   Sources said October LAX jet fuel traded at a 6cts premium to November ULSD 
futures on the New York Mercantile Exchange. A day ago, the fuel traded at 
2.75cts and 2cts futures discounts.

   November LAX pipeline jet fuel was bid at parity with the December ULSD 
futures contract.

   In other products, November ULSD for export out-of-state traded at an 8cts 
premium to December ULSD futures while November CARB ULSD was offered at a 7cts 
premium.

   October CARBOB was talked at a 7.5cts premium to November RBOB futures and 
November CARBOB, the higher 10.5 RVP fuel, traded from 9cts to 11cts premiums 
to December RBOB futures.

    

    

   Dawn Gallagher, 1.732.531.4451, dawn.gallagher@dtn.com, www.dtn.com.




(c) Copyright 2020 DTN, LLC. All rights reserved.