Group 3 Jet Fuel Basis Rises 10cts, Hits a Two-Month High

DAVENPORT, FL (DTN) — Basis for Group 3 jet fuel soared on Friday (1/23), based on a trade, reaching a two-month high.

Jet fuel strengthened on the day after a trade was confirmed done at 10 cts to a 10cts discount to March NYMEX ULSD futures, the strongest level since November 26, 2025, when it was at 8cts discount to the front-month ULSD futures contract.

“This big move was due to Valero, which was a strong buyer today, actively purchasing barrels amid a shortage of sellers,” a source familiar with the market said.

The uptick in Group 3 jet fuel basis was not reflected across the broader Midwest, as Chicago jet fuel values held steady at a 32cts discount to March NYMEX ULSD futures, signaling that the strength remained localized rather than regional.

Jet fuel inventories in the Midwest (PADD 2) rose by 200,000 bbl to 7.7 million bbl for the week ended January 16, above the 7.5 million bbl reported during the same week last year, according to Energy Information Administration data released Thursday (1/22).