Recovery in west coast flight traffic good for oil and jet fuel
A REBOUND in both commercial and cargo flights on the US west coast is a good sign for the global oil market, reports London's Air Cargo News
A REBOUND in both commercial and cargo flights on the US west coast is a good sign for the global oil market, reports London's Air Cargo News.
Physical barrels of jet fuel in Los Angeles are trading at a small discount to Nymex since July as the market begins to pick up. However, the cargo hub in Alaska is recording jet fuel imports from South Korea.
'It looks like the demand decline is slightly less out here than the overall US,' said Stillwater Associates oil analyst John Faulstich.
The west coast tends to be the largest consumer of jet fuel with transpacific flights for passengers and cargo. Departures in Los Angeles and Asia Pacific nations in the week of October 20, while traffic in other regions declined.
The market for jet fuel made up eight per cent of the global oil market before the pandemic.
Meanwhile, the region is attracting imports from Asia despite refiners having problems getting rid of jet fuel.
West coast refiners have kept jet fuel supply under control, except for last week were stockpiles were at their lowest since 2005.