JET FUEL: Domestic Jet Fuel Sales Could Drop 6% During Flight Cuts
The US Federal Aviation Administration ordered incremental flight cuts to begin today and escalate to 10% next week, leading to a reduction in demand for domestic jet fuel, according to new BNEF research
- The cuts would remove slightly more than 100,000 b/d of jet fuel demand “over the coming weeks”, equivalent to roughly 6% of total US jet fuel consumption.
- 2024 data show jet fuel was about 1.7 Mb/d and anticipated to grow by 2.5% per day this year.
- EIA data showed US jet fuel stocks built by 277k bbl to 41.7m bbl in the seven days to Oct. 31, a 0.7% rise week-on-week.
- Four-week average jet demand fell 0.23% to 1.76m b/d. Meanwhile, weekly demand was down by 13.71%, or 267k b/d, to 1.681m b/d.
Global implied passenger jet fuel demand in the week to Nov. 10 is seen at 6.69m b/d, down 4.9% on the week and around 4.0% higher year-on-year, BNEF said earlier this week.
Source: Bloomberg L.P
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