NYH, Gulf Coast Cash Jet Fuel Basis Firm, Prices End Up
OAKHURST, N.J. (DTN) --- Spot jet fuel prices at the Gulf Coast and New York
Harbor rose in limited trade Tuesday as stronger basis merged with an uptick by
New York Mercantile Exchange ULSD futures. Weaker basis weighed on prices in
the heartland and at the West Coast in dull trade action.
NYMEX December ULSD futures edged up 0.38cts to settle at $1.9359 gallon
while the January West Texas Intermediate crude oil contract settled 41cts
higher at $56.83 bbl.
New York Harbor jet fuel sold at a 4.0cts futures discount for Buckeye
Pipeline transport, up 0.88cts at $1.8959 gallon.
Gulf Coast 54-grade traded 15.25cts below the January ULSD contract for 67th
cycle Colonial Pipeline shipment, 1.6cts higher at $1.7856 gallon.
Group 3 Q-grade was rated 2.5cts below the MERC for prompt Magellan Pipeline
delivery, up 0.38cts at $1.9101 gallon.
Chicago 51-grade for third cycle November generic pipeline delivery was
talked at an 11.5cts futures discount, down 0.12cts at $1.8209 gallon.
Los Angeles November LAX pipeline jet fuel was pegged 10.0cts below the
print, down 0.12cts at $1.8359 gallon. Prompt jet fuel in the Pacific Northwest
was talked at penny over the basin while the San Francisco Bay was indexed at
parity to L.A.
In other news, Airlines for America recently urged Congress to reject a
proposed increase in the Passenger Facility Charge, also known as the airport
Nicholas E. Calio, president of A4A urged Senate appropriations to first
make better use of existing resources, like the unobligated and unspent balance
of nearly $6 billion in the Airport and Airway Trust Fund, before raising taxes
on passengers who are already overburdened by taxes on their airline tickets.
Nearly doubling the PFC tax, as proposed in a Senate appropriations bill,
would cost travelers another $2.6 billion per year, according to the release.
Airport revenues are at an all-time high, with the Federal Aviation
Administration collecting $14 billion in taxes on passengers during
FY2017---more than ever collected. Record revenues and tax collections combined
with the AATF balance of nearly $6 billion means there's more money available
than ever before for Congress to spend on airport infrastructure.
"Congress should not raise taxes on passengers, especially when there are
record amounts of tax revenue sitting idle in the bank," said Calio.
Dawn Gallagher, 1.732.531.4451, firstname.lastname@example.org, www.dtn.com. (c)
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