Even as flights start to pick up, refiners are not in any hurry to produce more jet fuel. Crack spreads for aviation fuel are nega-tive in all regions except for the US Gulf Coast. Jet fuel became the first oil casualty of the coronavirus lockdown orders and will likely be the last fuel to see demand recovery, market sources say. And even then, the new normal for aviation implies lower volumes and slower growth rates. For all the talk of “green shoots” and impending recovery, only gasoline seems to be showing any strength in North America. (JFI May25’20). Data from Energy Intelligence show global jet demand averaging about 6 million barrels per day for the full year of 2020, down by 28% from last year. Traders say that any recovery will be led by gaso-line. “A car is a perfect social distancing vehicle” and consumers will avoid flying until there is a vaccine, one trader said. Jet cracks are strongest along the US Gulf Coast, where producing barrels is still a barely profitable prospect. Elsewhere jet is facing carnage, with cracks in Singapore against an incremental barrel of Oman crude at minus $2.20 per barrel (JFI May11’20).
展开▼
