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
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
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
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, firstname.lastname@example.org, www.dtn.com.
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