LA ULSD Basis Falls 9cts on Higher Inventories

MIAMI, FL (DTN) – Prompt Los Angeles ultra-low sulfur diesel basis weakened Thursday (6/11), falling by 9cts as rising West Coast distillate inventories helped ease supply concerns despite continued refinery constraints in California.

Los Angeles ULSD traded at  3cts premium to July NYMEX ULSD futures, down 9cts from Wednesday’s (6/10) last pegged value of 12cts premium.

Distillate fuel oil inventories in the region increased by 200,000 bbl to 10.2 million bbl during the week ending June 5 and were 200,000 bbl lower than the volume reported in the same period last year, according to U.S. Energy Information Administration data.

PADD 5 distillate imports fell by 9,000 bpd to 3,000 bpd on the week but were 2,000 bpd higher than the same week in 2025.

The lower basis came as the inventory build signaled improving regional supply conditions, offsetting support from the shutdown of Phillips 66’s 139,000 bpd Los Angeles refinery and the ongoing closure process at Valero’s 145,000 bpd Benicia refinery. While refinery outages continue to limit production capacity, the increase in distillate stocks helped pressure diesel premiums lower.