Los Angeles Cash Jet Fuel Basis Fall to Over 2Mos. Low
8/05 4:55 PM
Los Angeles Cash Jet Fuel Basis Fall to Over 2Mos. Low OAKHURST, N.J. (DTN) --- Los Angeles cash jet fuel basis eroded further in thin midweek trade, dropping to levels not seen in more than 10 weeks amid continued lackluster demand while diesel basis again edged higher, sources said. Energy Information Administration data for the month of May, the latest available, show jet fuel demand dropped by 14% from the month prior to average 596,000 bpd, the lowest jet fuel demand in the United States since 1968 and a drop of 1.2 million bpd or 67% from May 2019. While the month-over-month was smaller than the March to April slide, it marked the third straight month in which jet fuel demand reached historic lows. EIA said the May 2019 to May 2020 fall-off was the largest year-on-year reduction for any month on record on both a volumetric and percentage basis. August LAX pipeline jet fuel traded at 6cts and 7.5cts discounts to New York Mercantile Exchange September ULSD futures, down 1.75cts on the session. Prompt ULSD for export out-of-state traded at 5.5cts and 6cts premiums to September ULSD futures, up 2cts from the prior session. The state mandated fuel was indexed at parity with the out-of-state blend and was reported done at a 5.5cts futures premium. In the San Francisco Bay, prompt CARB ULSD was indexed at an 8cts premium to the print, a better than nickel hike, while August jet fuel was valued at parity with L.A. EIA data show PADD V diesel supply dropped to a 17-week low 13.166 million bbl as of July 31, down 730,000 bbl on the week and the steepest weekly drop in five-months. Dawn Gallagher, 732.531.4451, dawn.gallagher@dtn.com, http://www.dtn.com. (c) Copyright 2020 DTN, LLC. All rights reserved.