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Eid Holiday To Support Middle Eastern Jet Fuel Demand

OIL PRODUCTS

Jet fuel consumption in the Middle East is expected to strengthen in the coming weeks as airlines boosted capacity ahead of the Eid al-Fitr holidays anticipating of a significant increase in regional travel demand, but ample supply is likely to cap an upside in prices, traders said.

  • Higher demand is unlikely to boost prices because of excess supply, prompted by a hike in production at the start of the year, poor East-West arbitrage economics and an uneven recovery path in the Asian aviation sector.
  • "Kero/jet demand in the region will likely keep the momentum and increase by 36kbpd , or 8.1% year on year, to 476kbpd in Q2. Jet fuel demand in the Middle East region will likely increase 9.3% year on year in Q2," according to S&P Global.

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