Los Angeles ULSD Basis Jump 23cts on Active Trading

MIAMI, FL (DTN) — The basis of Los Angeles ultra-low sulfur diesel spiked by 23cts on Thursday (3/19) after a trade was reported at a 8ct premium against the NYMEX ULSD futures contract for May delivery.

This was a significant increase as Los Angeles ULSD basis flipped to a premium after recording an 11.5cts discount to May NYMEX ULSD futures in the previous trading session. 

Market participants did not cite a specific reason behind the increase.