Gulf, NYH Spot Jet Fuel Prices Edge Up on Stronger Basis
OAKHURST, N.J. (DTN) --- Cash jet fuel basis firmed at the East and Gulf
coasts Thursday in limited trade, lifting spot prices on the session, sources
said. Spot jet fuel prices in the heartland and West Coast declined on the day
as steady to weaker basis met with lower New York Mercantile Exchange ULSD
Benchmark crude and ULSD futures declined after seesawing in a tight range
as oversupply concerns weighed against talk that nearly half of Organization of
the Petroleum Countries' members have agreed to extend production cuts of 1.2
million bpd beyond the June 30 expiration.
NYMEX May West Texas Intermediate crude oil futures expired down 17cts at
$50.27 bbl settlement and the June contract settled down 14cts at $50.71 bbl.
June IntercontinentalExchange Brent crude settled 6cts higher at $52.99 bbl.
NYMEX May ULSD futures settled 0.24cts lower at $1.5789 gallon and the June
contract declined 0.35cts to $1.5857 gallon settlement.
New York Harbor jet fuel traded 4.5cts below the MERC for Buckeye Pipeline
shipment, 0.26cts higher at $1.5339 gallon.
Gulf Coast 54-grade traded for 24th cycle Colonial Pipeline shipment at a
7.25cts futures discount, up 0.26cts to $1.5064 gallon.
Group 3 Q-grade was rated at a 9.5cts futures discount for prompt Magellan
Pipeline delivery, down 0.24cts to $1.4839 gallon.
Chicago 51-grade was talked at a 2.5cts futures premium for third cycle
April East Chicago delivery, down 0.24cts to $1.6039 gallon.
Los Angeles April LAX pipeline jet fuel was talked at a 0.25cts futures
premium, down 0.49cts to $1.5814 gallon. Prompt jet fuel in the San Francisco
Bay was talked 3.0cts below L.A. while the Pacific Northwest was assessed at
parity to the basin.
Source said May LAX pipeline jet fuel in the basin traded flat to June ULSD
In other news, jet fuel deliveries, a measure of demand, totaled 1.649
million bpd, up 7.4% from March 2016, the American Petroleum Institute reports
in its latest Monthly Statistical Report. Year-to-date demand is 5.0% higher
than the same period in 2016.
Jet fuel production for the month profiled totaled 1.655 million bpd, a 6%
hike over the same month a year ago while year-to-date output increased 2.3%.
Data shows end of March jet fuel supplies were 42.1 million bpd, a drop of
6.0% from a month ago and down 3.9% versus March 2016.
Dawn Gallagher, 1.732.531.4451, email@example.com,
www.schneider-electric.com. (c) 2017 Schneider Electric. All rights reserved.