U.S. Jet Fuel Output Returns to Pre-COVID Levels Amid Soaring Demand – Reuters

By Shariq Khan and Seher Dareen

NEW YORK – U.S. refiners produced jet fuel last week at the highest rate since the pandemic began, according to government data, as they strive to meet expectations of record air travel this summer.

The net production of jet fuel by U.S. refiners reached approximately 1.9 million barrels per day (bpd) last week, marking an 8% increase compared to the same time last year and the highest weekly total since January 2020, as reported by the U.S. Energy Information Administration.

Government agencies and travel organizations are preparing for a record influx of airport passengers this summer, with jet fuel consumption expected to surpass pre-pandemic levels for the first time. The motorist group AAA forecasts that 5.74 million people will fly to their destinations during the July 4 holiday.

Furthermore, global jet fuel demand has now exceeded pre-pandemic levels for the first time, according to an analysis by JPMorgan published recently.

The four-week average jet fuel demand in the U.S. for the past week was about 1.75 million bpd, which is the highest for this period since 2019, based on data from the U.S. Energy Information Administration.

An increase in refinery output is anticipated to ensure sufficient supply to meet the expected demand surge during the holiday period, according to Matias Togni, founder of energy research firm Galpon Shipping & Trading.

Since the beginning of the year, U.S. refiners have added over 2 million barrels of jet fuel to their stockpiles, bringing inventories to 41.95 million barrels by June 14. This figure is 2% higher than last year and aligns with the seasonal average over the past five years.

Domestic airfares for the July 4 holiday are reportedly 2% lower than they were last year. Meanwhile, the flight tracker Airportia has indicated that total U.S. flights have increased by 1% compared to last year.

On Thursday, Airportia recorded 30,264 U.S. flights, representing a 7.2% increase from the same time last year.