Chicago Jet Basis DN 11cts on Slack Demand, Futures Rally


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- Midwest jet fuel cash basis weakened Friday (8/7), 
pressured by mounting inventory builds and sluggish regional spot demand amid a 
modest uptick in underlying benchmark futures.

   Chicago jet fuel differentials traded 11cts weaker at 66cts gallon discount 
to September NYMEX ULSD futures.

   Group 3 jet fuel also slumped, weakening 12cts to a 68cts discount to the 
September contract.

   On a weekly basis, Chicago jet fuel spot prices plunged 48.19cts, or 12.74%, 
to close at $3.2120 gallon. Group 3 jet fuel dropped 26.69cts or 7.46% on the 
week to finish at $3.1920 gallon.

   Softer spot buying interest dragged physical differentials lower across 
regional hubs.

   On the supply side, PADD 2 jet fuel inventories bucked a broader distillate 
draw, building 400,000 bbl during the week ended July 31 to 7.7 million bbl. 
The regional jet build placed stocks 300,000 bbl above year-ago levels, adding 
downward pressure to mid-continent cash marks.

   In futures trade, September NYMEX ULSD closed up $0.0204, or 0.5%, at 
$3.9024 gallon. Despite Friday's gain, the underlying diesel futures contract 
fell 5% over the course of the week.




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