Midwest ULSD Basis Rises Amid Limited Supplies


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- Midwest ultra-low sulfur (ULSD) basis surged Monday 
(5/4) amid limited supplies and an increase on underlying futures benchmark on 
the day.

   Chicago and Wolverine ULSD basis were assessed at a 18cts premium to June 
NYMEX ULSD futures, climbing 9cts on the session. Buckeye Complex ULSD was 
assessed at a 10cts premium over the same benchmark, rising 17cts.

   In the Group 3 market, ULSD -- commonly referred to as "X" -- strengthened 
by 1 cent to a 9.50cts premium to the front-month NYMEX ULSD futures contract.

   The hike was attributed to limited supplies driven by refinery issues and 
firm demand.

   Midwest distillate fuel stockpiles declined by 1.5 million bbl to 27 million 
bbl during the week ended April 27, the U.S. Energy Information Administration 
said in its latest weekly inventories. Year-on-year, Midwest distillate 
balances were off by 100,000 bbl, the data showed.  




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