Chicago ULSD Basis Strengthens as Stocks Narrow Oversupply
12/02 2:38 PM
Chicago ULSD Basis Strengthens as Stocks Narrow Oversupply CRANBURY, N.J. (DTN) -- Basis for ultra-low sulfur diesel fuel in the trifurcated Chicago market strengthened sharply Thursday, with spreads between the pipelines and Buckeye Storage Complex widening. ULSD basis for the West Shore, Badger pipeline network heading north to Wisconsin strengthened 100 points to a 4cts premium to January futures on the New York Mercantile Exchange, while ULSD moving east to Michigan on the Wolverine Pipeline improved 150 points to a 4.5cts futures premium. The premium barrel was at the Buckeye Storage Complex in northern Indiana, where ULSD basis shot up 250 points to a 5.5cts premium to January futures. The basis strength is realized following data from the Energy Information Administration released Wednesday showing PADD 2 Midwest distillate fuels stocks at 26.6 million bbl as of Nov. 26 narrowed an oversupply disposition against the three-year average by 691,000 bbl to 492,000 bbl from the previous week. The region saw the supply surplus narrow from 3.424 million bbl or 13.3% above the historical average on Nov. 5 to 1.9% on Nov. 26. Brian L. Milne, 1.402.255.8020,, (c) Copyright 2021 DTN, LLC. All rights reserved.
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