Midwest Jet Fuel Basis Extends Gains Amid Cycle 1 Heat


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- The discount for Midwest jet fuel narrowed further 
Tuesday (7/28) as emerging regional refinery disruptions compounded tight 
regional inventory levels during the Cycle 1 pipeline nomination window.

   Chicago jet fuel basis narrowed by 15cts to a 40cts discount to September 
NYMEX ULSD futures, extending Monday's 30cts advance.

   Physical traders reported operational issues at regional processing plants, 
including Phillips 66's 345,000 bpd Wood River and CITGO's 177,000 bpd Lemont 
refinery, which appeared to add to the upward pressure in Midwest cash 
differentials.

   "Cycle 1 is a sensitive time in the Midwest and talk of any refinery issues 
could be influential," a trader told DTN.

   The ongoing firming in cash differentials comes as physical buyers scramble 
to secure spot barrels following the start of August pipeline scheduling across 
the PADD 2 distribution network.




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