A Diesel Basis Spikes by 8cts on Active Trading


   
   MIAMI, FL (DTN) -- Prompt Los Angeles ultra-low-sulfur diesel (ULDS) basis 
strengthened by 8cts on Thursday (5/21) supported by firm demand and limited 
supplies. 
The increase came as U.S. West Coast distillate supplies tightened, even as 
import volumes improved in the region last week, while the market also rolled 
into a new trading month.

   Sources reported trades for June ULSD in Los Angeles at 43cts premiums to 
June New York Mercantile Exchange RBOB futures compared with 35cts premiums 
traded the prior day.

   The hike was driven by supply tightness and Energy Information 
Administration data showing weekly distillate fuel oil inventories in PADD 5 
fell by 200,000 bbl to 10.0 million bbl during the week ended May 15. 
Inventories were 300,000 bbl below the the volume reported year-over-year. ULSD 
imports in the region climbed by 10,000 bpd to 18,000 bpd in the same reference 
week, but volumes remained 29,000 bpd below the corresponding week in 2025.




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