Argus Americas Jet Fuel Index
US jet fuel prices continued to shed value in June, tumbling more than 25¢/USG month-over-month amid rising production and waning domestic demand.
Healthy export demand underpinned the marketplace with at least five cargoes shipping to Mexico over the past month. The Dominican Republic, Panama and Guatemala each took a single cargo, while Canadian, Caribbean and European demand soaked up excess waterborne supply.
US jet fuel production rose to the highest levels in nearly 10 months in mid-June, while domestic demand slumped to the lowest levels in a month at under 1.7mn b/d. Domestically, US Gulf coast producers faced an open arbitrage to the US northeast for the first half of June, though economics worsened considerably later in the month, while the arbitrage to the US midcontinent was firmly shut.
Despite a lack of domestic outlets, US Gulf coast jet supplies reached the lowest levels since November 2015 at just 12.4mn bl as export demand and curtailed output siphoned off excess barrels. Jet fuel prices were particularly hard hit at along the US west coast, tumbling 46.25¢/USG over the course of the month amid a flurry of east Asian import cargos.
Five cargoes have reached the US west coast this month, with another eight scheduled to hit the region by early July.