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Bloomberg
The Biden administration’s new vaccine-based travel rules are forecast to boost jet fuel consumption as they bring the US more in line with the European Union, helping revive flights across the Atlantic.
The increased transatlantic travel will probably add at least 250,000 barrels a day of crude demand, according to a senior trader at a top oil-trading firm. Bloomberg Intelligence analyst Fernando Valle also expects more than a quarter million barrels of daily crude consumption coming back, thanks to less restrictions on global vaccinated travellers in the US and Europe.
“We’ve picked up a lot on domestic travel and should pick up more than 250,000 barrels a day with easing restrictions on vaccinated travellers,†Valle said.
Air travel remains a weak spot in the oil market’s recovery from an unprecedented crash triggered by the pandemic last year, after flights were grounded worldwide
and commuters everywhere started working from home. Air routes between the US and Europe have historically been the world’s most profitable for business travel.