Midwest Jet Fuel Basis Diverge on NYMEX ULSD Fall


   
   SECAUCUS, NJ (DTN) -- Midwest spot jet fuel basis was mixed Tuesday (8/4), 
with a narrowing Chicago premium contrasting with gains in Group 3, as sharp 
selloff in underlying futures lent support to cash basis values.

   Chicago jet fuel basis showed the steepest fall, narrowing 16cts on the day 
to be assessed at a 55cts discount over September NYMEX ULSD futures, based on 
indications.

   Group 3 jet fuel basis bucked the downward momentum by strengthening 11cts 
on the day to finish at a 40cts discount to the same benchmark.  

   The NYMEX September ULSD futures contract fell $0.1067 or 2.8% to settle at 
$3.7705 gallon, extending the previous session's 6% drop driven by progress in 
diplomatic efforts to end the U.S.-Iran war.

   The divergence in Midwest cash differentials comes as ongoing weakness in 
energy futures continues to weigh on physical product values across regional 
trading hubs.

   Higher refinery run rates in PADD 2 continue to cushion market supply, 
supported by elevated utilization rates that reached 101.4% during the week 
ended July 24, according to federal data reported last week.




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