Jet fuel reclaims king of the barrel status in Europe amid demand revival
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Profit margins for refining jet fuel in Europe have skyrocketed in recent weeks driven by strong seasonal demand, combined with low stocks and a lack of local supply. Jet fuel is now the most lucrative oil product in the barrel, with crack spreads climbing to record highs recently. Jet fuel prices are now trading at their typical pre COVID-19 premium versus diesel…
The availability of aviation fuel looks set to lag an uptick in demand approaching the summer flying season despite a high oil price environment…The supply picture for jet fuel also looks tight, with flows from the East not as plentiful as previously expected…Europe is net-short jet fuel with the balance arriving from East of Suez markets, such as the Persian Gulf, east coast of India and China.
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