Even with its domestic industry, jet fuel usage in the U.S. is nevertheless down by extra than 55% as opposed with calendar year-back concentrations, in accordance to weekly estimates from the U.S. Vitality Information and facts Administration.
Jet gasoline, with strict excellent specifications, is ordinarily a top quality solution and makes a huge contribution to refinery margins and profitability.
Pursuing the epidemic, having said that, refiners have been forced to dump undesirable jet gas into the broader and less-financially rewarding pool for other center distillates.
The diversion of surplus jet fuel has contributed to oversupply and bloated stocks of other center distillates and is weighing on refining margins.
In switch, oversupply of distillates and poor margins are incentivising refineries to limit their crude purchases and processing, keeping back broader restoration in the oil market place.
(John Kemp is a Reuters industry analyst. The views expressed are his individual)