Los Angeles Jet Fuel Basis Strengthens 7cts on Active Trade

MIAMI, FL (DTN) – Los Angeles jet fuel basis strengthened Tuesday (7/14), recovering from recent weakness, as market participants monitored tightening spot values amid mixed regional supply fundamentals.

Los Angeles jet fuel traded at a 28cts discount to August NYMEX ULSD futures, up 7cts from Monday’s (7/13) last pegged level of a 35cts discount, according to West Coast market participants.

The rebound comes as West Coast jet fuel inventories remain below year-ago levels. U.S. Energy Information Administration data for the week ended July 10 showed jet fuel inventories in PADD 5 climbed by 100,000 bbl to 11.1 million bbl. Inventories were 100,000 bbl below the level reported during the same period last year.

Jet fuel imports into PADD 5 fell by 47,000 bpd to zero during the reporting week and were unchanged from the same week a year earlier.