NYH, Houston Jet Fuel Basis Jump 20cts on Active Trading

HOUSTON, TX (DTN) – Jet fuel basis in the New York Harbor and Houston spot markets continued its upward trend on Thursday (3/5), rising over 20 cents on the day, tracking a 10% rise on underlying ultra-low sulfur diesel (ULSD) futures contract for April delivery.

The hike was supported by active trading and a wider bid-offer spread and after crude benchmarks hit a 20-month high on the day tied with the Iran war extension outlook.

Basis for jet fuel on the Buckeye Pipeline in the New York Harbor climbed by 21cts to a 50cts premium to April NYMEX ULSD futures contract, based on a trade reported done at that level.

At the Houston origin of the Colonial Pipeline, jet fuel traded at a 42.50cts premium to the April futures contract, a 22.50cts increase from the previous session, based on bids talked at 40cts basis and offers at 65cts basis.

The stronger basis was also supported by the Spring refinery maintenance season ahead of the summer driving season’s high demand.