ULSD Basis in Chicago Markets Strengthen ahead of Holiday
3/28 3:59 PM
ULSD Basis in Chicago Markets Strengthen ahead of Holiday
CRANBURY, N.J. (DTN) -- Basis for ultra-low sulfur diesel fuel in Chicago
spot markets for cycle one April pipeline delivery strengthened Thursday,
posting sizable gains ahead of the Easter holiday weekend.
After early trades at 100-point premiums to May futures on the New York
Mercantile Exchange for both the Badger Pipeline and at the Buckeye Storage
Complex, ULSD on the Illinois-to-Wisconsin Badger line traded at a 400-point
futures premium. Late Thursday, the Badger and West Shore pipelines were
assessed at 350-point premiums to May futures, strengthening 650 points on the
session. ULSD at the complex in northern Indiana and on the eastbound Wolverine
Pipeline were assessed at 500-point premiums to May futures, strengthening 450
and 600 points, respectively.
Distillate fuel inventory in PADD 2 increased 510,000 bbl from a 2024 low to
31.846 million bbl during the week ended March 21, according to the Energy
Information Administration. Inventory is 2.222 million bbl above year ago.
The strengthening basis comes ahead of a scheduled turnaround at
ExxonMobil's 251,800 bpd Joliet refinery in Illinois, which is to begin April 1
and last for seven to eight weeks, according to Industrial Info Resources. IIR
said maintenance will be conducted on six major units and several sulfur
recovery units.
Brian L. Milne, 1.732.768.0260, brian.milne@dtn.com, www.dtn.com.
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