Los Angeles jet fuel spikes over 30 cents to 9-year high on refinery work

http://www.chemnet.com   May 18,2015 Platts

　　The Los Angeles jet fuel market jumped over 30 cents after being heard done at NYMEX June ULSD plus 60 cents/gal as several refineries in the region undergo maintenance. Platts assessed the market plus 26.25 cents/gal the previous day.

　　This is a nearly nine-year high for the differential. It was last higher in December 2006, when it was 63.25 cents/gal over the underlying NYMEX futures market. Direct comparisons are difficult considering the NYMEX futures contract switch from heating oil to ULSD in 2013.

　　"It just got real," one trader said.

　　Nearly every refinery in the Los Angeles area is undergoing maintenance. Chevron's 45,000 b/d hydrocracking unit at its El Segundo refinery remained idled for planned work expected to last until mid-June. Phillips 66 is working on a hydrotreater, a hydrogen unit and a reformate unit at its 139,000 b/d Los Angeles, refinery complex, a trade source said Thursday. Tesoro's Los Angeles area refinery remained in unplanned maintenance and was heard in the market bidding Friday. Market sources said it was preparing for more work starting next week.Additionally, BP's Cherry Point, Washington, refinery, a major producer of jet fuel in the region, began planned maintenance in mid-April that is expected to last until mid-June.

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