Jet fuel differentials across the US rose Friday to their highest levels in months as the market dealt with the lowest inventories in over a month amid high summer demand.
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S&P Global Platts assessed benchmark Gulf Coast jet on the first day of trading on Colonial Pipeline’s prompt 39th cycle at the NYMEX August ULSD futures contract minus 4.50 cents/gal. That was up 50 points on the day and highest since reaching minus 4.25 cents/gal on April 26.
Jet fuel demand has been high as summer travelers are flying in unprecedented numbers, supporting higher differentials. Industry trade group Airlines for America predicted 246 million people will fly between June 1 and August 31 this year, up 3.7% over summer 2017.
Increased demand has taken its toll on stock levels. The latest Energy Information Administration data showed nationwide jet inventories fell 979,000 barrels to 40.97 million barrels, a five-week low.
Atlantic Coast prices climbed Friday, as well. Jet on Buckeye Pipeline in New York Harbor rose 50 points to futures plus 1.30 cents/gal, highest since reaching plus 3 cents/gal on May 11.
On the West Coast, jet fuel in Los Angeles rose 50 points to futures plus 2 cents/gal, its highest level since May 14, when it was assessed at futures plus 2.4 cents/gal.
–Daron Jones, firstname.lastname@example.org
–Edited by Kevin Saville, email@example.com