Los Angeles Jet Fuel Basis Falls 11cts Amid Ample Supply

MIAMI, FL (DTN) – Los Angeles jet fuel basis weakened Monday (7/13) as ultra-low sulfur diesel (ULSD) futures contract surged more than 8% on the day amid renewed geopolitical concerns over hostilities in the Middle East, outweighing the impact of a weekly inventory build.  

Los Angeles jet fuel traded at a 38cts discount to August NYMEX ULSD futures, widening by 11cts from Friday’s (7/10) last pegged level of a 27cts discount, according to West Coast market participants.

The move lower comes as supply concerns remain limited across the West Coast, with no refinery flaring activity reported Monday. U.S. Energy Information Administration data for the week ended July 3 showed jet fuel inventories in the PADD 5 region increased by 200,000 bbl to 11 million bbl. Inventories were 200,000 bbl below the level reported during the same week last year.

Jet fuel imports fell by 124,000 bpd to zero during the reporting week an