US Cash Jet Fuel Basis, Prices End Lackluster Session Mixed

    

   OAKHURST, N.J. (DTN) --- Cash jet fuel basis along the coasts were steady to 
weaker in limited traded Thursday, combining with a further decline by New York 
Mercantile Exchange ULSD futures for spot price losses. In the heartland 
markets, cash basis firmed in afternoon discussion with prices ending the day 
mixed.

   NYMEX August ULSD futures tumbled 3.01cts to $1.8625 gallon settlement while 
nearby delivery month West Texas Intermediate crude futures dropped $1.48 to 
settle at $55.30 bbl.

   In cash trade, New York Harbor jet fuel remained at a 5.5cts premium to 
August ULSD futures for prompt Buckeye Pipeline shipment, down 3.01cts with the 
MERC to $1.9175 gallon.

   Gulf Coast 54-grade for 42nd cycle Colonial Pipeline delivery traded at a 
0.50cts futures discount, on par with day prior trades. The loss on the print 
pulled the spot price down 3.01cts to $1.8575 gallon.

   Group 3 Q-grade jet fuel was indexed at a 3cts futures premium for prompt 
cycle Magellan Pipeline delivery versus a 4cts discount yesterday. Stronger 
basis lifted spot price up 3.99cts to $1.8925 gallon.

   Chicago 51-grade for third cycle July east Chicago delivery was talked 2cts 
stronger in basis at futures parity. With the loss on the print, spot price 
fell 1.01cts to $1.8625 gallon.

   Los Angeles July LAX pipeline jet fuel traded last at a 1cts futures 
premium. Cash basis eased 0.5cts on the session with spot price down 3.51cts to 
$1.8725 gallon.

   San Francisco and Pacific Northwest cash jet fuel basis were pegged at 1cts 
futures premiums. 

   In other news, the American Petroleum Institute in its most recent Monthly 
Statistical Report showed June kerosene jet fuel demand at 1.8 million bpd, a 
seasonal 4.2% increase versus May but down 1.9% from June 2018. Still, API 
reports demand was the second strongest for June.

   Year-to-date demand for the fuel was reported at 1.710 million bpd, up 1.6% 
from the same period a year ago.

   Consistent with reports by the International Air Transport Association, 
passenger demand was solid with slower growth. However, air cargo freight 
demand remained weak in response to slower global trade and economic growth.

   Kerosene type jet fuel production of 1.876 million bpd was down 0.9% from 
June 2018 while year-to-date output declined 1.3% to 1.755 million bpd.

   API data showed supply of jet fuel ended June at 39.9 million bbl, up 2.8% 
from the prior month but down 2.1% compared to June 2018.

   Dawn Gallagher, 1.732.531.4451, dawn.gallagher@dtn.com, www.dtn.com. (c) 
2019 DTN. All rights reserved.