The US Gulf Coast ULSD differential fell to its lowest level Tuesday since using the NYMEX ULSD futures basis in April.
Previously, heating oil futures were used in the basis.
Gulf Coast ULSD fell 1.20 cents/gal to minus 7.50 cents/gal as exports slowed.
Traders said exports to Europe slowed Tuesday, which was deadline day for a Colonial Pipeline shipping cycle.
"The arbitrage to Europe closed down pretty good; an armada of cargoes went that way last week," one trader said.
With arbitrage to the Group 3 and Chicago regions closed, there was no place for excess barrels to go, one broker said.
"It doesn't make sense to buy it and store right now," a second broker said. "So not many options for sellers."
At 3:15 pm EST, Platts assessed the NYMEX December ULSD futures contract at $2.8629/gal, down 83 points.
