AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- Jet refining margins in Asia jumped to their highest levels in October due to a solid recovery in air travel in the region.
- Jet refining margins in Europe have surged to the levels last seen in the first quarter of 2020.
- Jet fuel will be the last one to mark its recovery to the pre-pandemic levels due to uneven vaccination rates across the globe.
Jet fuel refining margins in Asia jumped to the highest levels in October since January 2020 on the back of a strong recovery in the demand for air travel in Asia amid ease in global COVID-19 cases.
As per the International Energy Agency (IEA) monthly report, released on Thursday, jet refining margins in Europe have also surged to the levels last seen in the first quarter of 2020 amid a solid recovery in air travels.
Asia-Pacific nations that hold some of the world's strictest pandemic-related travel rules are gradually easing border restrictions resulting in a solid increase in flight bookings and travel-related inquiries.
Solid Recovery
Aviation fuel | Source: © Wkcode | Megapixl.com
The solid recovery in the demand for aviation fuel has overlapped with the peak heating season for kerosene that has lifted the outlook for the middle distillate fuel which has been the biggest drag on the margins of global refiners since 2020.
Jet fuel will be the last one to mark its recovery to the pre-pandemic levels as uneven vaccination rates across the globe are going to affect regional air travel demand over 2022, which will ultimately reach normal levels in 2023.
Business travels across the globe are yet to make recovery from the lows of the pandemic and until they do a solid comeback, the market will be soft.
Bottom Line
Asian refining margins have jumped to their highest levels in October since January 2020 due to a solid recovery in air travels in the region followed by ease in global COVID-19 cases.
