Chicago ULSD Basis Jumps as Area Stocks Sink to 8mos Low


   
   CRANBURY, N.J. (DTN) -- Basis for ultra-low sulfur diesel fuel in the 
multiple spot markets in Chicago surged 500 points to a 5cts discount to 
December futures on the New York Mercantile Exchange, where buying activity 
erupted ahead of the Thanksgiving Day holiday.

   The sharply stronger basis followed this morning's Energy Information 
Administration's weekly inventory report showing PADD 2 distillate fuel stocks 
were drawn down 1.3 million bbl or 4.7% to a 26.2 million bbl eight-month low 
during the week-ended Nov. 19, with the previous low at 25.8 million bbl in 
mid-March. The draw narrowed a surplus against the three-year average by 1.427 
million bbl to 1.183 million bbl or 4.7%, the smallest oversupply for the 
market since the first week of October.

   EIA data shows PADD 2 distillate output averaged 1.151 million bpd during 
last week, flat with the three-year average.

    

    

   Brian L. Milne, 1.402.255.8020, brian.milne@dtn.com, www.dtn.com.




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