Chicago Jet Basis Dips 5cts as Distillates Diverge


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- Chicago jet fuel basis fell Monday (9/28) as physical 
differentials across PADD 2 hubs showed mixed performance ahead of the October 
NYMEX ULSD contract expiration.

   Chicago jet fuel basis weakened by 5cts to stand at a discount of 40cts 
gallon to the October NYMEX ULSD contract. Meanwhile,  the same product basis 
in Group 3 held unchanged on the day at a 50cts gallon discount.

   Midwest ULSD spot basis values were mixed on the day as Chicago ULSD basis 
dropped 0.50cts to trade at a 1.5cts gallon discount to October futures. ULSD 
basis in the Plains slipped 0.25cts to a 1ct gallon premium, while in the 
Buckeye Complex and Wolverine pipeline ULSD basis both gained 2.50cts to settle 
at a 1.5cts gallon premium to the October NYMEX contract.

   The basis adjustments responded to the front-month futures contract expiry. 
NYMEX November WTI crude rose $0.19 to settle at $92.60 bbl, after trading 
between a high of $96.54 bbl and a low of $91.25 bbl.

   The spot price moves unfolded against a backdrop of tight regional inventory 
cover. Energy Information Administration data showed PADD 2 distillate fuel oil 
stocks drew by 1.6 million bbl during the week ended September 18 to 27.2 
million bbl, marking their lowest level since mid-June.

   The sharp inventory draw reflected a steep drop in processing throughput 
across the region. PADD 2 refiner crude utilization plunged 11 percentage 
points on the week to 89%, with crude inputs dropping by 439,000 bpd to 3.802 
million bpd.

    




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