Nayara Energy's jet fuel exports not seeing impact from coronavirus yet

摘要

On the other hand, Nayara Energy CEO B Anand states diat Indian privately-owned oil company's jet fuel shipments will be affected if the outbreak is not contained soon. Anand added that even if jet fuel exports take a hit, the recovery in India's aviation sector should allow surplus volumes to be consumed by the domestic market. Anand stated, "In India, one is excited about the growth prospects that India offers for jet fuel demand. We are hoping to see a substantial increase in air traffic. There is sufficient capacity to absorb incremental supplies." Last year, jet fuel demand posted 0.5% growth to 178K b/d, compared to 10.5%/y growth from 2016-18. According to Platts Analytics, domestic jet fuel is expected to grow 7% this year as India's economy recovers. Meanwhile, the coronavirus outbreak is expected to weigh on jet fuel cracks. Anand has reported that Nayara Energy's jet fuel refining margins have been weaker. Both the physical and paper jet fuel/Platts Dubai cracks have been below the $10/bbl level in the week ending Feb. 7 after a number of flights have been delayed and cancelled. On Feb. 7, FOB Singapore jet fuel/front-month cash Dubai crude fell to $8.23/bbl, which was the lowest since $7.83/bbl on Aug. 6 2015.