The cash differential for US Gulf Coast jet fuel climbed to its highest level since February 2016 on Wednesday after a Louisiana refinery fire boosted distillate prices.
S&P Global Platts assessed benchmark Gulf Coast 54 grade jet on Colonial Pipeline's prompt 10th cycle at the NYMEX March ULSD futures contract minus 7.10 cents/gal Wednesday, up 1.30 cents from Tuesday, and the highest level for the differential since it reached the front month minus 7.70 cents/gal on February 17, 2016.
Sources said the 30,471 b/d hydrocracker at Valero's 180,000 b/d Meraux, Louisiana, refinery caught fire Wednesday morning. Valero spokeswoman Lillian Riojas later confirmed the fire had been brought under control.
Sources said a large draw in US inventories also contributed to a rise in Gulf and Atlantic coast differentials. Platts assessed jet barrels on Buckeye Pipeline in New York Harbor at NYMEX March ULSD minus 1.75 cents/gal Wednesday, up 1.75 cents from Tuesday and its highest level since reaching the front month minus 0.50 cent/gal on September 13.
US Energy Information Administration data released Wednesday showed US jet stocks fell 1.92 million barrels to 40.59 million barrels in the week that ended February 3. Last week's total was the lowest since the week that ended July 1, 2016, when they totaled 40.24 million barrels.
