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Bloomberg
Jet fuel supplies on the US East Coast have never been lower, despite producers boosting output amid rising demand.
Inventories for the region are at a historic low in government data going back to 1990. Nationally, stockpiles are at their lowest on a seasonal basis since 2004. Meanwhile, implied jet fuel demand based on a four-week average rose to within 7% of 2019 levels last week as more Americans return to air travel.
The shortage has grown despite refiners prioritising aviation fuel at the expense of diesel in late March, a reversal of earlier efforts. US jet yields — the percentage of crude oil that becomes jet — increased to more than 10% last week, the highest level in about
two months.
Importers also brought in more of the fuel for the period, including a cargo from Saudi Arabia that was diverted to New York.
Fuel demand is set to rise further heading into summer. Delta Air Lines Inc saw record high sales and booking activity over the last month for travel through early summer. The company said it would have no trouble raising fares to cover fuel prices this quarter and possibly through the summer.
New York wholesale jet fuel prices have come off historic highs seen earlier this month, but at about $5.20 a gallon, that’s still nearly 70% above month-ago levels.