Argus Americas Jet Fuel Index
US jet fuel prices recovered between 15¢ and 26¢/USG over the course of January as demand rebounded to the highest level since the week ended 30 November. Further gains were limited by rising inventories and increased import activity. US jet fuel imports reached 223,000 b/d, the highest level in four months. Basis gains accounted for the bulk of the rebound, climbing nearly 16¢/USG, or 9pc, over the course of the past month. Spot cash differentials were mostly higher, particularly in the Chicago area as a spate of regional refinery upsets supported distillate values.
At over 41mn bl, US jet fuel supplies are up by more than 320,000 bl on year-ago levels and within the five-year average. Inventories are relatively tight in the US Atlantic coast region, though fresh shipments from the US Gulf coast are expected to arrive along the Colonial pipeline. Strong premiums in the US Atlantic coast saw some Mideast Gulf cargoes diverted to the region earlier this month. US export activity was pronounced helping to balance markets as US Gulf coast production remained elevated. Exports reached 294,000 b/d in early January, the highest weekly level since early October. US jet fuel exports reached a record high during the month of October.
The arrival of imports and domestic pipeline offtakes should rebalance the US Atlantic coast market in the short-term, while lingering refinery issues in the Chicago area has yet to open the arbitrage from the US Gulf coast. Looking ahead, extensive turnaround work in the US Gulf coast scheduled for February should offset any seasonal demand slump and mitigate bearish impacts of the temporary US government shutdown.
Mission, Objectives &
Technical Maintenance & Procurement
Legal and Aeropolitical Affairs
ALTA/IATA Safety Team
Fuel, Air Navigation & Airport Charges