Sign Up for FREE Daily Energy News
  • Stay Connected
  • linkedin
  • twitter
  • facebook
  • youtube2

Hazloc Heaters
Hazloc Heaters

EnergyNow Showcase

Jet fuel prices take flight as vaccine roll-outs spur hopes of more air travel

English Español 简体中文 हिन्दी Português
These translations are done via Google Translate

SINGAPORE/LONDON/NEW YORK (Reuters) – Global jet fuel markets are coming back to life, resuscitated by a rebound in air cargo demand, gradually recovering passenger traffic and hopes that COVID-19 vaccines will spur more international flights in 2021.

The pandemic brought air travel to a virtual halt this year, and analysts say it may take years before global appetite for jet fuel returns to pre-pandemic levels.

But refining profits for the fuel surged to multi-month highs in all key trading hubs in December on hopes of higher demand in 2021, with U.S. and European margins underpinned by a recovery in air cargo volumes and Asian margins also by a rebound in domestic travel and heating consumption.

(GRAPHIC: Global jet fuel margins by region – )

Reuters Graphic

Jet refining margins in Asia – the world’s top fuel market – have soared 580% and export prices by 45% since mid-September to their highest since March. Domestic air travel picked up as some countries eased coronavirus curbs.

“We expect vaccines will become available by (the) end of Q1 2021 and some travel restrictions will remain in place,” said Qiaoling Chen, research associate at consultancy Wood Mackenzie in Singapore, forecasting Asian jet fuel demand at 1.4 million barrels per day (bpd) in the first quarter of next year.

(GRAPHIC: Global jet fuel prices – )

Reuters Graphic

The consultancy expects appetite for jet fuel in the region to hit 1.3 million bpd in the fourth quarter of 2020, up by 460,000 bpd from Q2, but still 41% below the same period in 2019.


In the United States, margins to refine crude into distillates, which includes jet fuel, have about doubled since mid-September to more than $13 a barrel, but are still about $10 per barrel below year-ago levels, according to Refinitiv data.

Artyom Tchen, senior analyst at Rystad Energy in Norway, said U.S. jet fuel demand is currently around 1.34 million bpd, 30% off pre-coronavirus levels in January. International flights account for over 60% of global appetite for jet fuel.

Share This:

More News Articles

New SHOWCASE Directory Companies


RAM Industries Inc.
RHK Hydraulic Cylinder Services Inc.