Drop in Commercial Air Travel Impacts Jet Fuel Demand
August 21, 2020
In mid-March a national emergency was declared. Routine business air travel stopped and discretionary air travel halted. The resulting demand for jet fuel dropped from around 1.9 million barrels a day to less than 600,000 barrels a day. Demand had recovered to about 1.1 million barrels a day by the beginning of August but now it is decreasing again. It now appears that the US business travel will not increase after this summer vacation period, so going forward, we do not expect a further recovery of jet fuel demand and there remains the downside possibility of demand again falling.
The chart below can be constructed in the Fundamental Analytics platform under Fundamentals > DOE > Implied Demand > Commercial Kerosene-type Jet Fuel > Total US.
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The Fundamental Analytics Team
The information provided here is for general informational purposes only and should not be considered individualized investment advice. All expressions of opinion are subject to change without notice in reaction to shifting market conditions.