SF ULSD Basis Falls by 35cts to Lowest Level Since March


   
Kristina Davis
DTN Refined Fuels Market Reporter

   MIAMI, FL (DTN) -- San Francisco ultra-low sulfur diesel (ULSD) basis 
weakened sharply Tuesday (6/9), plummeting by 35cts on tight supply conditions.

The fall came after, a trade for San Francisco ULSD was confirmed at a 5cts 
premium to July NYMEX ULSD futures, sinking the basis down by 35cts from the 
market's last pegged level on Monday (6/8), at a 40cts premium.

The move pushed the San Francisco ULSD basis to its lowest level since March 
24, 2026, when the market was also assessed at a 5cts premium. The following 
day, March 25, the basis rallied by 40cts to a 45cts premium as supply concerns 
and refinery disruptions tightened distillate availability across the U.S. West 
Coast, according to DTN data.

The decline comes as West Coast distillate inventories have stabilized in 
recent weeks. According to U.S. Energy Information Administration data for the 
week ended May 29, distillate fuel inventories in PADD 5 were unchanged on the 
week at 10 million bbl, although stocks were 200,000 bbl below the same period 
last year.

Distillate imports into the region fell by 28,000 bpd to 12,000 bpd during the 
reporting week and were unchanged from the same week in 2025, according to EIA 
data.

Despite relatively low inventory levels and declining imports, the sharp drop 
in San Francisco ULSD basis suggests prompt supply conditions have improved 
from the severe tightness seen earlier this year, when refinery outages and 
closure related concerns drove diesel premiums to multi-month highs across the 
West Coast.




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