Chicago ULSD Hits Two-Year High on Last Cycle 2 Trade


   
Miguel E. Andujar
DTN Refined Fuels Market Reporter

   DAVENPORT, FL (DTN) -- Basis for ULSD in Chicago spot markets surged 9.5cts 
for cycle two November pipeline deliveries on Friday, with market focus to turn 
to cycle three November pipeline scheduling on Monday.
The spike brought basis for ULSD in Chicago to a 16cts premium against December 
ULSD futures on the New York Mercantile Exchange (NYMEX) according to DTN 
Energy data. That marked a two-year closing high and 32cts above the same day 
in the previous year, when basis for ULSD in Chicago was negative 16cts.
Friday's upward was in follow-through to Thursday's trade, when the premium 
rose 6.5cts. The move over the two sessions occurred as markets headed into the 
cycle two delivery period.
Looking ahead, cycle three trade indications showed values easing to an 8cts 
premium to December ULSD futures.




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