NYH Cash Jet Fuel Basis again Weakens, Weighs on Price
10/12 5:10 PM
NYH Cash Jet Fuel Basis again Weakens, Weighs on Price OAKHURST, N.J. (DTN) --- U.S. spot jet fuel prices declined across the board Thursday afternoon as New York Mercantile Exchange ULSD futures shed just over 2.0cts. Prices in New York Harbor were again the weakest of regions, weighed down by another multi-cent decrease in basis. Sources said Harbor jet fuel traded at an 11.5cts futures discount for Buckeye Pipeline transport, down 3.25cts on basis and sliding 5.31cts in spot price to $1.6505 gallon. Gulf Coast 54-grade traded ahead of 59th cycle Colonial Pipeline scheduling at a 15.25cts futures discount, down 2.46cts to $1.6130 gallon. Group 3 Q-grade was rated at a 4.0cts discount to November ULSD futures prompt Magellan Pipeline delivery, a loss of 2.06cts to $1.7255 gallon. Chicago 51-grade was priced a penny over the MERC for second cycle October East Chicago delivery, down 2.06cts at $1.7755 gallon. Los Angeles October LAX pipeline jet fuel was talked 7.0cts below the print, down 0.5cts in basis and 2.56cts in spot price to $1.6955 gallon. San Francisco prompt jet fuel was flat with the basin while the Pacific Northwest was talked at a 6.0cts futures discount. NYMEX November ULSD futures dropped alongside the rest of the oil complex on profit taking after recent gains. The spot month ULSD contract dropped 2.06cts to settle at $1.7655 gallon while the November crude contract fell 70cts to settle at $50.60 bbl. Energy Information Administration data for the week-ended Oct. 6 shows distillate supplies continued lower for a sixth week, though the 1.5 million bbl draw was short of estimates at 2.0 million bbl. Supply is nearly 14% lower than the same week in 2016. EIA reports domestic jet fuel inventories declined to 43.1 million bbl last week from 43.4 million bbl the week prior, leaving stocks 0.5% lower than the corresponding week in 2016. U.S. jet fuel production rose 79,000 bpd during the week-ended Oct. 6 to 1.697 million bpd, 6.1% higher than the same week last year. Data shows imports of the fuel slid 188,000 bpd to 89,000 bpd last week. EIA reports implied jet fuel demand reversed the prior week's drop, rising 317,000 bpd to 1.792 million bpd on the week while up 7.7% versus the same week in 2016. Four-week average demand at 1.718 million bpd was 4.6% higher than the same four-weeks last year. East Coast PADD 1 jet fuel inventories dropped about 1.0 million bbl to 19.6 million bbl while Midwest PADD 2 supplies fell roughly 600,000 bbl to 7.3 million bbl during the first week of October. Gulf Coast PADD 3 stocks rose to 14.6 million bbl from 13.4 million bbl the week prior and West Coast PADD 5 jet fuel supplies gained about 100,000 bbl to 9.8 million bbl last week. Dawn Gallagher, 1.732.531.4451, dawn.gallagher@dtn.com, www.dtn.com, (c) 2017 DTN. All rights reserved.