Chicago Spot Jet Fuel Prices Slip on Weaker Cash Basis

    

   OAKHURST, N.J. (DTN) --- Cash jet fuel basis in Chicago started the new 
trade week lower, offsetting a move higher by New York Mercantile Exchange ULSD 
futures to press spot prices down on the session, the only main trade hub to 
post a loss this afternoon.

   December NYMEX ULSD futures settled 1.27cts higher at $2.0864 gallon and the 
January contract rose 1.09cts to $2.0778 gallon settlement. 

   NYMEX December West Texas Intermediate expired up 30cts at $56.76 bbl while 
the January contract gained 52cts to settle at $57.20 bbl.

   In physical trade, Windy City 51-grade was talked 3.5cts below the MERC for 
third cycle November delivery into the Buckeye Complex, down 1.5cts in basis. 
Higher futures limited the spot price downturn to 0.23cts at $2.0514 gallon.

   New York Harbor jet fuel held at a 2.0cts futures discount for Buckeye 
Pipeline shipment, tracking the MERC up 1.27cts to $2.0664 gallon.

   Gulf 54-grade traded in front of 66th cycle Colonial Pipeline scheduling at 
an 11.5cts futures discount, down 1.25cts in basis. With the gain by futures, 
spot price was near flat at $1.9714 gallon.

   Group 3 Q-grade was talked at a 1.0cts discount to December ULSD futures for 
prompt offline Magellan Pipeline delivery, a penny firmer in basis and up 
2.27cts in spot price to $2.0764 gallon.

   Los Angeles November LAX pipeline jet fuel traded at 0.25cts and 0.50cts 
premiums to December ULSD futures, up over 2.25cts to $2.0915 gallon. December 
LAX pipeline jet fuel was offered at parity to the January ULSD contract.

   San Francisco Bay spot jet fuel was talked flat to the basin while the 
Pacific Northwest was indexed 4.0cts over the L.A. assessment.

   In other news, Agilyx late last week announced a collaborative agreement 
with Monroe Energy to supply up to 2,500 bpd of Agilyx's synthetic feedstock, 
which will be refined into jet fuel for Delta Airlines. Monroe Energy is a 
wholly owned subsidiary of Delta Air Lines.

   Agilyx derives the feedstock, Toxic Substances Control Act registered Agilyx 
Synthetic Crude Oil product, through a proprietary waste plastics recycling 
technology. Agilyx plans to locate a production facility near Monroe's refinery 
outside of Philadelphia.

   Agilyx, based in Tigard, Oregon, has Virgin Group founder Sir Richard 
Branson as an early investor.

   "This is a major step forward in the search for a cost effective low carbon 
aviation fuel," said Sir Richard.

   Dawn Gallagher, 1.732.531.4451, dawn.gallagher@dtn.com, www.dtn.com. (c) 
2018 DTN. All rights reserved.