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Bloomberg
The new wave of lockdowns around the world is sending US jet fuel prices slumping and exports slowing to a trickle all over again.
It’s not as bad as the crash last April, but the headwinds the aviation market still faces before vaccines bring life to normal are increasingly showing. Benchmark jet fuel prices in New York and Houston hit six-month lows, and demand in both markets plunged to a seasonal seven-year low last week.
While oil got a boost this year from a Saudi output-cut pledge, vaccine rollouts and a potential $1.9 trillion US aid package, the outlook for flying remains far from rosy.
Jet fuel in Houston fell to a 16.25-cent discount to diesel futures in New York, the weakest since July 6. New York jet fuel, mostly supplied from the Gulf Coast, was at a 12.25-cent discount to diesel, the lowest since August.