Midwest Jet Fuels Diverge; Group 3 Basis Discount Narrows

SECAUCUS, NJ (DTN) – The basis for Group 3 jet fuel narrowed sharply on Tuesday, while Chicago jet fuel differentials widened amid diverging supply dynamics across the Midwest.

Group 3 jet fuel was talked at a discount of 12.5cts gallon to the July NYMEX ULSD benchmark, recovering from Monday’s discount of 26.5cts gallon.

Meanwhile, Chicago jet fuel discounts widened to 62.5cts gallon against the benchmark, compared to a discount of 52cts gallon on Monday.

The contrasting price movements highlighted regional shifts in spot market liquidity and demand across different parts of PADD 2.

Tuesday’s price activity in Midwest jet fuel came as July ULSD on NYMEX surged, rising 5.82cts, or 1.6%, to $3.6976 gallon by 12:30 ET.  

On the supply front, regional jet fuel inventories held flat at 6.8 million bbl for the week, which remains 200,000 bbl above the 6.6 million bbl recorded during the same period last year. Midwest jet fuel imports reached 18,000 bpd during the profiled week, marking a gain of 1,000 bpd from the prior week and an 11,000 bpd increase year-on-year.