Chicago ULSD Basis Jumps as Area Stocks Sink to 8mos Low
11/24 2:28 PM
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. (c) Copyright 2021 DTN, LLC. All rights reserved.