Jet Fuel Slumps on Gulf as Supplies Build to 3-Month HighChristine Harvey
Jet fuel weakened on the U.S. Gulf Coast as the region’s inventories rose to the highest level in three months.
Stockpiles of the aviation fuel on the Gulf Coast, known as PADD 3, increased 491,000 barrels to 13.5 million in the week ended Feb. 15, the Energy Information Administration reported today. That’s the highest level since Nov. 9 and the first advance in three weeks.
Jet 54 fell 0.25 cent to trade at a premium of 8 cents a gallon versus heating oil futures on the New York Mercantile Exchange at 2 p.m. after reaching the highest level since Sept. 4 yesterday, according to data compiled by Bloomberg. The Gulf Coast was 2.5 cents below jet fuel in New York.
Conventional, 87-octane gasoline in the Gulf retreated 0.38 cent to 4.13 cents a gallon below futures, while ultra-low-sulfur diesel dropped 0.13 cent to a premium of 7 cents.
The 3-2-1 crack spread on the Gulf Coast, a measure of refining profitability based on West Texas Intermediate in Cushing, Oklahoma, slipped 14 cents to $35.20 a barrel. The same spread based on Light Louisiana Sweet oil declined 64 cents to $12.45 a barrel.