Commodities

Due to increased demand and refinery problems, jet fuel costs have increased.

At the Henderson Executive Airport on October 21, 2019, a corporate aircraft gets refueled with Jet A fuel while attending the National Business Aviation Association (NBAA) conference. - According to experts and refining executives, the price of jet fuel has increased to previously unheard-of levels in January due to demand from China's removal of COVID-19 travel restrictions and U.S. refinery disruptions. According to statistics from flight tracking company Airportia, the number of flights into and out of China has more than quadrupled since early December to more than 10,700 aircraft daily on average. According to the International Energy Agency, which keeps track of energy use, jet fuel will be the main driver of this year's increase in oil demand. According to Viktor Katona, an expert at data company Kpler, this month's demand might reach 6.6 million barrels per day, the highest level since February 2020. In Singapore, the price of jet fuel is currently $122.30 a barrel, up 14% over the previous two weeks. The cost of petroleum in Europe has increased to $115 per tonne, the highest level since June. On Thursday, New York spot prices were reported at $2.45 more than American ultra-low sulfur diesel, the highest premium at this time of year since at least 2011. According to Gary Simmons, chief commercial officer of Valero Energy, recent cold weather in the U.S. Gulf Coast shut down several processing units and increased the cost of jet fuel (NYSE: ). In light of the continued surge in air travel, he stated on a Thursday earnings call that "overall, we expect jet demand to climb considerably this year." According to experts, a seaborne Russian refined product import ban imposed by the European Union on February 5 will put pressure on European supply and raise the need for American refiners to fill the gap. According to U.S. official data, the country's jet fuel stocks finished the previous year at 34 million barrels, the lowest level since 1990. In 2022, the total amount of jet fuel supplied—a proxy for demand—was 1.56 million barrels per day, the most since 2019.
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