Gulf ULSD Basis Weakens as Southeast Stocks now in Surplus
6/29 3:21 PM
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,, (c) Copyright 2022 DTN, LLC. All rights reserved.
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