US Spot Jet Fuel Markets mostly Gain in Dull Midweek Trade
OAKHURST, N.J. (DTN) --- U.S. spot jet fuel prices edged higher in most
regional markets Wednesday afternoon as New York Mercantile Exchange January
ULSD futures eked out a session gain for the second day. Cash jet fuel basis in
the heartland markets held steady, and basis at the Gulf Coast firmed while
differentials weakened along the East and West coasts.
In paper trade, nearby delivery month West Texas Intermediate crude futures
settled 50cts lower at $51.15 bbl while the February Intercontinental Exchange
Brent contract eased 5cts to $60.15 bbl settlement. NYMEX January ULSD futures
settled up 0.38cts to $1.8509 gallon with the February contract 0.46cts higher
at $1.8438 gallon.
In New York Harbor, jet fuel was priced 0.50cts over the MERC for prompt
Buckeye Pipeline shipment, up 0.13cts to $1.8559 gallon.
Gulf Coast 54-grade traded at a 9.75cts futures discount for 71st cycle
Colonial Pipeline transport, an increase of 0.88cts to $1.7534 gallon.
Group 3 Q-grade was talked at MERC level for prompt offline Magellan
Pipeline delivery, 0.38cts higher at $1.8509 gallon.
Chicago 51-grade was rated at a 14.0cts futures discount for second cycle
December generic pipeline delivery, up 0.38cts to $1.7109 gallon.
Los Angeles December LAX pipeline jet fuel traded 0.50cts over the print,
down 0.37cts to $1.8559 gallon.
San Francisco Bay spot jet fuel was talked flat by a penny over the MERC,
with the Pacific Northwest assessed at parity to the California markets.
The Energy Information Administration today reported total U.S. jet fuel
supplies gained 886,000 bbl to 39.002 million bbl in the week ended Dec. 7,
narrowing the year-over-year supply deficit from 5.5% to 4.6%. Overall jet fuel
production increased 118,000 bpd to 1.843 million bpd, 6.6% higher than the
corresponding week in 2017, according to the data. Imports of the fuel
increased 67,000 bpd to 144,000 bpd last week and implied demand dropped
185,000 bpd to 1.650 million bpd.
Along the East Coast PADD 1, EIA reported jet fuel supply rose from 8.254
million bbl a week earlier to 9.564 million bbl while Midwest PADD 2 stocks
gained 383,000 bbl to 7.370 million bbl, the highest level since early October.
Gulf Coast PADD 3 jet fuel stockpiles dropped 1.141 million bbl to 12.682
million bbl and West Coast PADD V supply 184,000 bbl to 8.646 million bbl in
the week ended Dec. 7.
Dawn Gallagher, 1.732.531.4451, firstname.lastname@example.org, www.dtn.com. (c)
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