US Cash Jet Fuel Basis Remain Mixed, Prices Up with Futures
OAKHURST, N.J. (DTN) --- East of the Rockies and West Coast cash jet fuel
basis were mixed in limited Monday trade while spot prices posted across the
board increases thanks to further gains by the New York Mercantile Exchange
ULSD contract to start the new trade week.
In futures trade, the oil complex gained with higher equities while also
finding support from the weekend drone attack on Saudi Arabia's Shaybah oil
field. The attack reportedly caused a fire at a natural gas plant at the field
but had no impact on production.
NYMEX September West Texas Intermediate crude futures rallied $1.34 to
$56.21 bbl settlement. The September ULSD rose 2.03cts to settle at $1.8331
gallon while the October contract settled 1.98cts higher at $1.8397 gallon.
In the cash market, New York Harbor jet fuel traded 2.75cts over the MERC
for prompt Buckeye Pipeline shipment, up a penny in basis and over 3cts in spot
price to $1.8606 gallon.
Gulf Coast 54-grade was indexed at a 3.75cts discount to October ULSD
futures for 49th cycle Colonial Pipeline shipment, nearly 2cts higher at
Group 3 Q-grade for prompt cycle Magellan Pipeline delivery eased 0.50cts in
basis to a 3.5cts futures premium. With the rise on the print, spot price
gained 1.53cts to $1.8681 gallon.
Chicago 51-grade was indexed at a 3.5cts futures discount for third cycle
August east Chicago delivery, tracking futures 2.03cts higher to $1.7981 gallon.
Los Angeles August LAX pipeline jet fuel traded at 1.75cts futures premiums,
down 0.75cts in basis but up 1.28cts in spot price at $1.8506 gallon.
In San Francisco and the Pacific Northwest, cash jet fuel basis maintained
parity to the basin.
Dawn Gallagher, 1.732.531.4451, email@example.com, www.dtn.com. (c)
2019 DTN. All rights reserved.