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Jet fuel production & demand increasing

JET FUEL

Last week saw an increase of 56kbpd to 1.78mbpd of jet fuel production in EIA data bringing it back up to pre pandemic levels. Jet fuel now has the highest yield since Feb20 as refiners are converting 11.3% of crude into Jet.

  • The recovery post pandemic of jet fuel has been much slower than other fuels such as gasoline and diesel. EIA implied demand is up to only about 10% below 2019 for this time of the year. Government forecasts are for US consumption of 1.58mbpd in Q322.
  • Latest Eurocontrol data shows the 7 day rolling average of daily flights are now 14% below 2019 levels having been 21% below at the start of April.
  • Spread prices have encouraged refiners to increase the proportion of jet fuel produced. The premium of jet to gasoil has increased over the over the last couple of months with NWE prices reaching a peak of 130$/mt last week.

Source: MNI, EIA

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