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Soaring demand for travel this winter is boosting refiners’ margins for making jet fuel in Asia, providing a bright spot for the oil market even as the outlook for other transport fuels weakens.
The post-pandemic recovery of air travel is gaining pace in China and India, while the US is expecting to see record travel demand during the holiday season. The boom in travel also coincides with increased demand for kerosene-type fuels, including jet fuel, in the winter.
That’s pushing up prices of the aviation oil, making the fuel the most profitable for Asian refiners to produce.
The bullishness for jet fuel comes after years of efforts by airlines to restore flight capacity to pre-Covid levels and marks some relief for the oil market, even as traders weigh bearish calls on demand ahead.