LA Jet Fuel Basis Jumps to 65cts, Extends Rally


   
Kristina Davis
DTN Refined Fuels Market Reporter

   MIAMI, FL (DTN) - Basis for prompt Los Angeles jet fuel jumped by 22.5cts on 
Wednesday (3/4) to a 65ct premium above April NYMEX ULSD futures, following a 
rally in the futures market that lifted ULSD.

   The latest move extends a sharp upward trend that began March 3, when LA jet 
fuel basis surged by 26.5cts to a 42.5cts premium over the ULSD contract.

   Domestic supply tightness also supported spot market prices as refining 
utilization in the West Coast region decreased to 79.6% in the week ending 
February 27, down from 81.1% the previous week.

   Lower refining rates in PADD 5 reflect the recent closure of Phillips 
139,000 bpd Los Angeles, California, refinery and the upcoming shutdown of 
Valero's 145,000 bpd, Benicia California, refinery, with operations set to 
cease in late April.




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