Midwest Jet Fuel Discounts Diverge on Evolving Supply


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- The discount for Midwest jet fuel variants against 
NYMEX ultra-low sulfur diesel (ULSD) for July diverged Monday (6/8) after 
widening together in the prior session as market participants adjusted to 
evolving supply concerns.

   Chicago jet fuel was talked at a discount of 70cts to NYMEX ULSD for July, 
narrowing from Friday's 95cts.

   The basis for Group 3 jet fuel was heard at a discount of 85cts a gallon to 
July ULSD, expanding from the prior session's 80cts.

   Regional pipeline scheduling cycles, including the Magellan and Badger 
networks, heavily dictate market dynamics for both Group 3 and Chicago jet 
fuel. Local spot barrels face steep discounts to secure immediate buyers or 
storage if shippers cannot lock in line space from Midcontinent refining 
centers.

   PADD 2 hubs remain highly vulnerable to localized oversupply during peak 
regional refinery utilization because Midwest aviation demand lacks the 
structural deficit seen on the East Coast.

   In latest inventory data for Midwest jet fuel, the U.S. Energy Information 
Administration reported that stocks climbed by 800,000 bbl on the week and by 
500,000 bbl from a year ago to reach 6.8 million bbl during the week ended May 
29.




(c) Copyright 2026 DTN, LLC. All rights reserved.