Jet Fuel

The price of WTI crude oil and kerosene-type jet fuel has peaked to levels last seen in 2012 as of March 2022, reaching highs of USD $119 per barrel (91% YoY) and USD $3.7 per gallon (120% YoY) respectively. The uncertainty caused by the conflict in Ukraine is expected to push prices higher, particularly if more sanctions are applied to the Russian energy sector. Nevertheless, an increase in oil production by OPEC members is likely to stabilise the price. It is likely that these higher oil prices will result in extra costs of transporting air cargo being passed on to consumers. The chart below shows the Cushing, OK WTI crude oil spot price against U.S. Gulf Coast kerosene-type jet fuel spot price between Jan 2018 and March 2022. https://www.iata.org/en/publications/economics/fuel-monitor/ The aviation and shipping sectors are among the most fuel-sensitive sectors. Airlines face challenging times and high fuel costs can influence their profitability path, while shipping companies operating vessels ‘on the spot’ are most vulnerable to rising costs https://think.ing.com/articles/soaring-fuel-prices-complicate-aviation-sectors-recovery-from-pandemic https://www.ch-aviation.com/portal/news/114873-dakar-senegal-facing-acute-jet-fuel-shortage

Jet Fuel

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