Jet Fuel Demand Has Potential Could Be Key Asian Crude Driver: Platts

Market watchers are seeing jet fuel as a critical contributor to oil demand in Asia, even if its demand is still lagging expectations, Platts said in its oil market podcast.

• Asia’s jet fuel recovery is coming later than in other regions after the pandemic, especially in China, Platts added.
• There have been signs indicating a robust recovery in the sector. For example, Japan’s tourism office showed data of rising arrivals, although this is still 30% below pre-pandemic levels.
• A slow recovery in China’s international aviation sector poses a risk to the region’s demand recovery. Domestic travel is booming as tourists opt for local travel rather than overseas trips.
• Greater fuel efficiencies have also allowed aviation demand to grow at a faster rate than jet fuel demand, which has contributed to the lag in kerosene consumption.