US Spot Jet Fuel Basis Mostly Stronger, Prices End Higher
2/23 5:49 PM
US Spot Jet Fuel Basis Mostly Stronger, Prices End Higher OAKHURST, N.J. (DTN) --- Cash jet fuel basis at the coastal trade hubs strengthened in pre-weekend trade, combining with higher New York Mercantile Exchange ULSD futures to lift spot prices. Heartland spot jet fuel prices gained in dull trade on mixed basis. In futures trade, the oil complex extended gains ahead of the weekend trade break with a rebound in equities markets. Oil futures were also supported by Energy Information Administration data for the week-ended Feb. 16 showing crude supply dropped unexpectedly. NYMEX April West Texas Intermediate crude oil futures settled 78cts higher at $63.55 bbl. The spot month ULSD contract rose 1.67cts to $1.9694 gallon settlement while April futures rallied nearly 2cts to settle at $1.9726 gallon. New York Harbor jet fuel sold at a 2.75cts futures discount for Buckeye Pipeline shipment, up 2.42cts to $1.9419 gallon. Gulf Coast 54-grade traded in front of 13th cycle Colonial Pipeline scheduling at a 5.75cts discount to April ULSD futures, rallying 3.65cts to $1.9151 gallon. Group 3 Q-grade was priced at a 4.0cts futures discount for prompt Magellan Pipeline delivery, up 1.67cts to $1.9294 gallon. Chicago 51-grade for generic third cycle February pipeline delivery was talked 1.5cts below the MERC, a gain of 2.17cts to $1.9544 gallon. Los Angeles March LAX pipeline jet fuel traded 2.0cts and 2.5cts over April ULSD futures, up 2.9cts to $1.9976 gallon. In other news, Airlines for America, the industry trade organization for the leading United States airlines, released a letter from the CEOs of six leading U.S. commercial airlines, urging Transportation Secretary Elaine Chao to oppose any attempt to increase the current Passenger Facility Charge, also known as the airport tax. In their letter to Secretary Chao, the CEOs of Alaska Airlines, American Airlines, Hawaiian Airlines, JetBlue Airways, Southwest Airlines and United Airlines noted that the Senate Transportation, Housing and Urban Development appropriations bill contains a massive tax hike on travelers, simply for using the airport. Nearly doubling the PFCS, which is neither justified nor needed, was proposed despite the fact that U.S. airports are in a strong financial position. In 2016, airports had more than $14.2 billion in unrestricted cash and investments on hand; collected record revenues from airline rents and fees and existing PFCs; has access to nearly $6 billion in uncommitted funding for airport infrastructure projects in the Airport and Airway Trust Fund. Dawn Gallagher, 1.732.531.4451, dawn.gallagher@dtn.com, www.dtn.com. (c) 2018 DTN. All rights reserved.