Short Squeeze for ULSD in Group 3 again Strengthens Basis
2/25 2:40 PM
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 2015. 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, brian.milne@dtn.com, www.dtn.com. (c) Copyright 2021 DTN, LLC. All rights reserved.
 
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