Chicago Jet Fuel Basis Hits 2-Year High on Tight Supplies

DAVENPORT, FL (DTN) – Chicago jet fuel basis hit more than two-year highs Tuesday (10/28) amid the supply tightness triggered by last week’s disruption at BP’s Whiting, Indiana refinery.

Jet fuel basis in Chicago was at a 90cts premium to December NYMEX ULSD futures in latest trade — its strongest since January 9, 2023, when it peaked at 91.5cts, DTN Energy data showed.

Some market participants said BP appeared to be an active buyer for jet fuel in the Chicago market on Tuesday, after the brief power outage on Friday (10/24) at the 435,000-bpd Whiting refinery that prompted a temporary evacuation.

“It seems that BP is still a buyer in the market for jet fuel in Chicago,” a source familiar with Midwest refined product trading said. “Prices are so high at Chicago that we may see traders trying to move jet fuel from Group 3 to West Shore.”

Jet fuel at Group 3 was assessed at a 5cts premium to ULSD futures, maintaining a wide 85cts discount compared to Chicago levels.

BP did not respond to a request for comment.