Global jet fuel fails to gain altitude
While travelers are still hesitant to take to the skies, the jet fuel struggles to gain altitude as other oils continue to come out of their dive.
Among the âbig 3â petroleum products – gasoline, diesel and jet fuel – demand for the latter is still significantly lower than pre-Covid levels. With the continued volatility of air travel, jet fuel is causing the most pandemic-related damage to the industry, said Rory Johnston, managing director and market economist at Price Street.
The early days of Covid saw international flight restrictions and border blockages, dropping jet fuel consumption by around 75%. While air travel has increased steadily in recent months, jet fuel consumption is still down by at least a third in June 2021, compared to what it would normally be, Johnston told Capital.com .
Jet fuel is the most important demand recovery category in 2022, possibly contributing to an increase in overall oil demand of four million barrels per day (MMbpd) from June levels if growth rates before the pandemic can be restored, he wrote in a newsletter.
“If jet fuel can regain this pre-Covid trend growth rate, that is, there is no permanent post-Covid behavior change, then the demand for jet fuel in this sample could increase d ‘around 60% or nearly two MMbpd (involving more than four MMbpd worldwide) from June 2021 levels, âhe wrote.
Current air traffic statistics are mixed, but suggest “strong growth” in Canada, Japan and the United States, while there are “weak conditions” in China and India, he said. .
The global decline in Covid cases will put a tailwind on jet fuel demand for the remainder of the year, but, warns Johnston, the “risk of re-acceleration and continued blending of country-level recoveries – not to mention any potential. more sustainable behavior change – push any likely global recovery to pre-Covid levels through mid-2022. â
The week ending Oct. 8, A1 jet fuel prices ended up 5.8% to $ 94.60 per barrel, or $ 2.25 per gallon, well below the raw material high of 3 , $ 33 per gallon on February 24, 2012, according to at the US Energy Information Administration.
Delta Airline released its quarterly figures on Wednesday.
The Atlanta, Ga.-Based airline said adjusted operating revenue of $ 8.3 billion (Â£ 6.08 billion) – which excludes sales of jet fuel to other refineries – has been recovered at 66% from the September 2019 quarter on capacity that was restored to 71%, the company said. reported.
Read more: Oil prices continue to rise as electricity problems persist (capital.com)
Read more: Oil prices turn volatile as panic pushes the market (capital.com)
Ready to start?
Capital Com is an execution-only service provider. The material provided on this website is for informational purposes only and should not be construed as investment advice. Any opinion that may be provided on this page does not constitute a recommendation of Capital Com or its agents. We make no representations or warranties about the accuracy or completeness of the information provided on this page. If you rely on the information on this page, you do so entirely at your own risk.