Gulf ULSD Basis Weakens as Southeast Stocks now in Surplus


   
   CRANBURY, N.J. (DTN) -- Basis for ultra-low sulfur diesel fuel in Houston 
trading for movement on the Colonial Pipeline weakened 110 points to a 25-point 
discount to August futures on the New York Mercantile Exchange ahead of a 
scheduling deadline for cycle 37, pressured by building distillate inventory in 
the Gulf Coast and Lower Atlantic states.

   Energy Information Administration reported a 700,000 bbl build in PADD 3 
distillate inventory to 40.5 million bbl during the week-ended June 24, 
narrowing a deficit against the three-year average by a little more than 
500,000 bbl to a still wide 6.4 million bbl or 13.6%. EIA reported a more than 
2 million bbl increase for PADD 1C stocks that pushed Lower Atlantic inventory 
to a 14.238 million bbl 10-month high and flipped the region's stock 
disposition to a surplus against the three-year average for the first time 
since late January. PADD 1C stocks on June 24 were 1.254 million bbl or 9.7% 
above the three-year average, EIA data show.

    

    

   Brian L. Milne, 1.402.255.8020, brian.milne@dtn.com, www.dtn.com.




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