USGC Jet Fuel Basis Reaches an All Time-High


   
Maria Eugenia Garcia
DTN Energy Editor

   HOUSTON, TX (DTN) -The basis of jet fuel at the Houston origin of the 
Colonial pipeline in the Gulf Coast spot market surged by 38cts to a 52cts 
premium over May ULSD futures on the New York Mercantile Exchange Friday 
(3/27), driven by supply tightness and high export demand.

   Bids and offers for USGC jet fuel were heard at 50cts gallon and 52cts 
gallon, respectively, on the day while trades were talked at around 51.75 
gallon and 52cts. This is the first time jet fuel spot prices in the U.S. Gulf 
Coast have reached an all- time high, according to DTN data.

   Diesel and jet prices in the USGC have faced extreme upward pressure due to 
high export demand tied to supply tightness caused by the Iran war and 
production issues at Valero's 435,000 bpd Port Arthur refinery, which reported 
an explosion on Monday (3/23).

   USGC diesel basis was assessed on Friday at a 3.50cts discount below the 
NYMEX ULSD futures contract for May delivery, 1.50cts down from the prior 
session.

   "All I've seen is the seesaw on diesel, up 23cts, down 32cts, up 26cts and 
down 12cst. With prices changing a couple of times a day, we are bringing in 
product at a higher price than we are selling it," a Houston-based diesel 
seller said.




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