Group 3 Jet Fuel Basis Strongest in 8 Months


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- The physical cash discount for Group 3 jet fuel 
narrowed to its tightest level since November on Thursday (7/9) as tumbling 
NYMEX futures led to inverse action in refined fuels.

   Group 3 jet fuel was talked at a discount of just 2.5cts gallon to August 
NYMEX ULSD futures, after narrowing 12.5cts from Wednesday's (7/8) level. It's 
the strongest basis for regional aviation fuel since Nov. 17, 2025, when the 
basis was at a 2cts discount.

   Tightening prompt cycle space on regional pipelines has also triggered short 
covering of late that decoupled the spot aviation market from back-end 
fundamentals.

   The resilient cash performance for the prompt Group 3 product bucked a 
broader retracement in energy futures. August NYMEX ULSD shed 8.59cts to finish 
at $3.5545 gallon, driven by macroeconomic anxieties and demand destruction 
concerns.

   The sharp narrowing in the jet fuel basis, meanwhile, stood in contrast to a 
fundamentally soft distillate backdrop in the Midcontinent.

   Energy Information Administration data released Wednesday showed PADD 2 
distillate inventories rose 500,000 bbl to 28.3 million bbl during the week 
ended July 3, keeping regional stocks 3.7 million bbl above year-ago levels.

    




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