Houston Jet Fuel Basis Strengthens on Lower Output

HOUSTON, TX (DTN) — Basis for jet fuel at the Houston origin of the Colonial Pipeline in the Gulf Coast spot market rose 2.75cts to a 20.50cts discount to March ULSD futures on the New York Mercantile Exchange on Friday (1/23), amid limited supplies caused by lower production.   

The basis of jet fuel in the USGC market was heard trading on the day at minus 17.75cts against the front-month ULSD contract.

PADD 3 jet fuel inventories reported a weekly drop of 1.2 million bbl to 13.5 million bbl for the week ended January 16, according to Energy Information Administration data released on Thursday (1/22). This was 300,000 bbl lower than the volume reported in the same week from the previous year. Jet fuel output averaged 961,000 bpd in the reference week, down 56,000 bpd year-over-year.