Global Aviation Fuel Demand Set To Reach Pre-Pandemic Levels By 2025, S & P Reports
(MENAFN- AzerNews)
In June, global air passenger travel, measured in revenue
passenger kilometers (RPK), surged by 9.1% year-on-year, driven by
the summer vacation season, leading to increased jet fuel prices,
according to the International Air transport Association,
Azernews reports citing S&P Global Commodity
Insights that international demand grew by 12.3% year-on-year
during the same period, with the Asia-Pacific region leading at
22.6%, followed by Africa and Latin America at 16.9% and 15.3%,
respectively.
On August 6, Platts, a division of S&P Global Commodity
Insights, reported that the CIF NWE jet cargo price differential
stood at a premium of $48.75 per ton over the front-month ICE LSGO
futures contract, significantly higher than the year-to-date low of
$9.75 per ton recorded on March 3.
Commodity Insights forecasts global jet fuel and kerosene demand
to reach 8 million barrels per day this summer, a level not seen
since late 2019. The annual average is expected to return to
pre-pandemic levels by 2025.
Since 2021, the average global annual jet fuel/kerosene demand
growth has been a major driver of oil demand, with projections of
around 550,000 barrels per day in 2024, slowing to 300,000 barrels
per day in 2025, largely driven by Western Europe and China.
Despite a retreat from the peak caused by the Russia-Ukraine
conflict, jet fuel spreads in Europe and the US Gulf Coast remain
robust, exceeding the historical average of approximately $16 per
barrel. Jet fuel prices are expected to remain above diesel prices
through the end of the year and into next year.
Looking ahead, Commodity Insights anticipates that jet crack
spreads may narrow on average but could still exceed the long-term
historical range of up to $20 per barrel. S&P Global expects
global jet demand to continue growing rapidly, with summer air
travel driving jet fuel prices closer to pre-pandemic levels.
MENAFN08082024000195011045ID1108531855
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.