Los Angeles Cash Jet Fuel Basis Fall to Over 2Mos. Low


   
    

   OAKHURST, N.J. (DTN) --- Los Angeles cash jet fuel basis eroded further in 
thin midweek trade, dropping to levels not seen in more than 10 weeks amid 
continued lackluster demand while diesel basis again edged higher, sources said.

   Energy Information Administration data for the month of May, the latest 
available, show jet fuel demand dropped by 14% from the month prior to average 
596,000 bpd, the lowest jet fuel demand in the United States since 1968 and a 
drop of 1.2 million bpd or 67% from May 2019. While the month-over-month was 
smaller than the March to April slide, it marked the third straight month in 
which jet fuel demand reached historic lows. EIA said the May 2019 to May 2020 
fall-off was the largest year-on-year reduction for any month on record on both 
a volumetric and percentage basis.

   August LAX pipeline jet fuel traded at 6cts and 7.5cts discounts to New York 
Mercantile Exchange September ULSD futures, down 1.75cts on the session.

   Prompt ULSD for export out-of-state traded at 5.5cts and 6cts premiums to 
September ULSD futures, up 2cts from the prior session. The state mandated fuel 
was indexed at parity with the out-of-state blend and was reported done at a 
5.5cts futures premium.

   In the San Francisco Bay, prompt CARB ULSD was indexed at an 8cts premium to 
the print, a better than nickel hike, while August jet fuel was valued at 
parity with L.A.

   EIA data show PADD V diesel supply dropped to a 17-week low 13.166 million 
bbl as of July 31, down 730,000 bbl on the week and the steepest weekly drop in 
five-months.

    

    

   Dawn Gallagher, 732.531.4451, dawn.gallagher@dtn.com, http://www.dtn.com.




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