SF Diesel, LA CARBOB Basis Fall on July Roll

MIAMI, FL (DTN) – San Francisco ultra-low sulfur diesel (ULSD) basis weakened sharply Wednesday (5/27) as the market began rolling into the July contract, amid improving supply conditions and softer demand.

The San Francisco ULSD basis fell by 21.25cts to a 40cts premium over July NYMEX ULSD futures, the move lower followed Tuesday’s (5/26) assessment at a 61.25cts premium to June NYMEX ULSD futures and marked a notable pullback from the tight-supply driven rallies seen across the U.S. West Coast earlier this spring, when refinery outages and closures pushed diesel and jet fuel premiums to multi month and record highs.
Separately, Los Angeles CARBOB gasoline basis also softened Wednesday during the transition into the July RBOB contract, with regular CARBOB trading at a 42cts premium to July NYMEX RBOB futures, down 6cts from the previous session. Los Angeles premium CARBOB moved in tandem, falling by 6cts to a 52cts premium as gasoline markets eased alongside improved inventory trends.
Even with Wednesday’s decline, West Coast distillate markets remain structurally tight following refinery disruptions, closures and planned maintenance works.

The American Petroleum Institute reported that U.S. distillate fuel oil stocks increased by 1.1 million bbl, during the week ended May 22, while gasoline inventories fell by 3.199 million bbl in the reported week, below the 5.8 million bbl decline recorded in the previous week.