US Cash Jet Basis Steady to Weaker, Futures Depress Prices
7/15 4:52 PM
US Cash Jet Basis Steady to Weaker, Futures Depress Prices OAKHURST, N.J. (DTN) --- Cash jet fuel basis along the coastal trade markets weakened in limited traded to start the new week while heartland basis values were unchanged from the prior trade day. Spot prices declined across the board Monday afternoon with the move lower by New York Mercantile Exchange ULSD futures. NYMEX August West Texas Intermediate crude futures settled 63cts lower at $59.58 bbl while the August ULSD contract settled down 2.85cts at $1.9516 gallon. In cash trade, New York Harbor jet fuel eased 0.50cts in basis, trading 5.5cts over the MERC for prompt Buckeye Pipeline shipment. With the loss on the print, spot price dropped 3.35cts to $2.0066 gallon. Gulf Coast 54-grade for 42nd cycle Colonial Pipeline delivery traded 0.75cts below August ULSD futures, sinking over a nickel to $1.9441 gallon. Group 3 Q-grade jet fuel was talked at a 4cts futures discount for prompt cycle Magellan Pipeline delivery, tracing futures down 2.85cts to $1.9116 gallon. Chicago 51-grade for third cycle July east Chicago delivery was priced at a 2cts futures discount, down 2.85cts to $1.9316 gallon. Los Angeles July LAX pipeline jet fuel traded 2.5cts and 2cts over the August ULSD contract, down 0.5cts in basis and 3.35cts in spot price to $1.9716 gallon. Sources pegged prompt jet fuel in San Francisco and the Pacific Northwest at parity to the basin. In other news, Airbus said recently it has expanded its aircraft deliveries using sustainable jet fuel blends, with one of the latest involving the milestone 50th A320 Family jetliner provided to Delta Air Lines from Airbus' production facility in Mobile, Ala. The landmark aircraft was an A321---Airbus' longest-fuselage version in its A320 product line---and the first of 20 for the U.S.-based airline whose delivery flights over the next year will operate with blends of sustainable jet fuel. Airbus offers this option of receiving new jetliners with sustainable fuel in their tanks as part of its strategy to promote a more regular use of sustainable fuels within the aviation industry. In the longer term, the company also envisions supporting industrial production of sustainable fuels for aviation in the southeastern U.S.----the broad geographical region in which the Mobile, Ala., production facility for A320 Family jetliners is located. Dawn Gallagher, 1.732.531.4451, dawn.galalgher@dtn.com, www.dtn.com. (c) 2019 DTN. All rights reserved.