Short Squeeze for ULSD in Group 3 again Strengthens Basis
CRANBURY, N.J. (DTN) -- Group 3 ultra-low sulfur diesel fuel basis surged
600 points on the session with trades at 13cts premiums to March futures on the
New York Mercantile Exchange, with basis now up 1,275 points since the
Presidents' Day weekend amid limited availability.
"So short on the product," commented a broker.
The short squeeze has pushed basis to levels not seen in more than five
years. The last time Group 3 ULSD basis was in double digits was in November
PADD 2 Midwest distillate production in the week-ended Feb. 19 fell 180,000
bpd or 17.6% to 841,000 bpd amid freezing weather conditions and power outages
caused by Winter Storm Uri.
Brian L. Milne, 1.402.255.8020, firstname.lastname@example.org, www.dtn.com.
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