Los Angeles Cash Jet Fuel Basis Swings to Premium vs MERC
10/22 4:45 PM
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.
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