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, firstname.lastname@example.org, www.dtn.com.
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