Group 3 Jet Fuel Basis Soars 20cts Amid Supply Constraints


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- Group 3 jet fuel cash differentials surged Tuesday 
(8/11) as prompt Mid-Continent supply constraints triggered strong buying 
interest,  driving physical marks sharply higher alongside gains in benchmark 
futures.

   Group 3 jet fuel was heard traded at a 50cts discount to September NYMEX 
ULSD futures, representing a steep 20cts jump on the session.

   In contrast, Chicago jet fuel basis remained steady from the previous 
trading session, with prompt barrels heard traded at a 55cts discount to the 
September NYMEX ULSD futures contract.

   In futures trading, NYMEX September ULSD futures rose $0.0627, or 1.5%, to 
settle at $4.2525 gallon Tuesday.

   The disparity between regional hubs underscored localized tightness across 
Group 3 distribution channels, even as broader Midwest demand signals showed 
underlying strength.

   The cash market strength was reinforced by paper market gains across the 
refined products complex, driven by geopolitical momentum and futures buying.

   Market sources attributed the rise in basis to futures strength rather than 
fresh operational disruptions, with thinner participation across trading desks.

   "There were just not as many people in the cash market today," a Midwest 
fuels trader told DTN. 

    




(c) Copyright 2026 DTN, LLC. All rights reserved.