LA Jet Fuel Basis Reaches 3-Year Highs Amid Tight Supplies

MIAMI, FL (DTN) — Los Angeles jet fuel basis has hit a three-year high starting January driven by tight supplies, according to traders. Los Angeles jet fuel basis traded at a 75cts premium against the NYMEX RBOB futures contract for February delivery on Tuesday (1/6), unchanged from the prior trading session. This is the highest levels since September 22, 2022, when it traded at an 80cts premium to October RBOB futures. 
Jet fuel prices for the Los Angeles region started its upward trend on Friday (1/2) after a trade was reported at a 25cts premium over the front-month RBOB futures contract. 
Traders said the price increase has been driven by seasonal demand dynamics that typically tighten availability in Southern California.