LA ULSD Basis Falls 9cts on Higher Inventories


   
Kristina Davis
DTN Refined Fuels Market Reporter

   MIAMI, FL (DTN) -- Prompt Los Angeles ultra-low sulfur diesel basis weakened 
Thursday (6/11), falling by 9cts as rising West Coast distillate inventories 
helped ease supply concerns despite continued refinery constraints in 
California.

Los Angeles ULSD traded at  3cts premium to July NYMEX ULSD futures, down 9cts 
from Wednesday's (6/10) last pegged value of 12cts premium.

Distillate fuel oil inventories in the region increased by 200,000 bbl to 10.2 
million bbl during the week ending June 5 and were 200,000 bbl lower than the 
volume reported in the same period last year, according to U.S. Energy 
Information Administration data.

PADD 5 distillate imports fell by 9,000 bpd to 3,000 bpd on the week but were 
2,000 bpd higher than the same week in 2025.

The lower basis came as the inventory build signaled improving regional supply 
conditions, offsetting support from the shutdown of Phillips 66's 139,000 bpd 
Los Angeles refinery and the ongoing closure process at Valero's 145,000 bpd 
Benicia refinery. While refinery outages continue to limit production capacity, 
the increase in distillate stocks helped pressure diesel premiums lower.




(c) Copyright 2026 DTN, LLC. All rights reserved.