AVIATION fuel supply on the us east coast has never been lower, despite producers boosting output amid rising demand, reports Bloomberg.
Inventories are at historic lows going back to 1990. Nationally, stockpiles are at their lowest on a seasonal basis since 2004. Meanwhile, implied jet fuel demand based on a four-week average rose to within seven per cent of 2019 levels last week as more Americans return to air travel.
The shortage has grown despite refiners prioritizing aviation fuel at the expense of diesel in late March, a reversal of earlier efforts. US jet yields - the percentage of crude oil that becomes jet - increased to more than 10 per cent last week, the highest level in about two months.
Importers also brought in more of the fuel for the period, including a cargo from Saudi Arabia that was diverted to New York.
Fuel demand is set to rise further heading into summer. Delta saw record-high sales and booking activity over the last month for travel through early summer. The company said it would have no trouble raising fares to cover fuel prices this quarter and possibly through the summer.
New York wholesale jet fuel prices have come off historic highs seen earlier this month, but at about US$5.20 a gallon, that's still nearly 70 per cent above month-ago levels.
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Inventories are at historic lows going back to 1990. Nationally, stockpiles are at their lowest on a seasonal basis since 2004. Meanwhile, implied jet fuel demand based on a four-week average rose to within seven per cent of 2019 levels last week as more Americans return to air travel.
The shortage has grown despite refiners prioritizing aviation fuel at the expense of diesel in late March, a reversal of earlier efforts. US jet yields - the percentage of crude oil that becomes jet - increased to more than 10 per cent last week, the highest level in about two months.
Importers also brought in more of the fuel for the period, including a cargo from Saudi Arabia that was diverted to New York.
Fuel demand is set to rise further heading into summer. Delta saw record-high sales and booking activity over the last month for travel through early summer. The company said it would have no trouble raising fares to cover fuel prices this quarter and possibly through the summer.
New York wholesale jet fuel prices have come off historic highs seen earlier this month, but at about US$5.20 a gallon, that's still nearly 70 per cent above month-ago levels.
SeaNews Turkey