LA Jet Fuel Basis Rebounds to 90cts


   
Kristina Davis
DTN Refined Fuels Market Reporter

   MIAMI, FL (DTN) -- The basis for prompt Los Angeles jet fuel strengthened 
Tuesday (4/28) by 10cts to a 95cts premium above May NYMEX ULSD futures, 
signaling renewed firmness after a sharp pullback in the previous session from 
record highs.

   Los Angeles jet fuel reached a historic $1.10 gallon premium last week, 
before shedding 25cts on Monday (4/27).

   Tuesday's partial rebound which brought jet fuel back towards triple-digit 
territory prompted traders to observe the structural supply tightness across 
the West Coast refining system that kept fuel prices broadly higher. The 
region's fuel processing capacity is under strain from reduced flexibility and 
ongoing market uncertainty tied to refinery closures and maintenance activity.

   The shutdown of Phillips 66's 139,000 bpd Los Angeles refinery earlier this 
year, combined with the planned closure of Valero's 145,000 bpd Benicia 
refinery later this month, has removed significant production from the West 
Coast regional system.

   With peak summer travel looming, market participants expect jet fuel values 
to remain highly sensitive to further operational disruptions.




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