Jet Fuel Basis Improves in most US Markets as Demand Gains


   
    

   CRANBURY, N.J. (DTN) -- Basis for jet fuel strengthened in most U.S. spot 
markets Friday, with spot values higher countrywide as pandemic forced 
lockdowns give way and more people take to the air.

   Data from the Transportation Security Administration shows more travelers 
passed through TSA checkpoints at U.S. airports Thursday than at anytime since 
March 22 when travel restrictions were taking effect. The data shows 391,892 
passengers passed through TSA checkpoints Thursday, although that's down 
2,232,065 or 85.1% against year ago. The fewest number of travelers passing 
through TSA checkpoints was on April 8 at 94,931, 95.7% below year prior.

   The Dallas Morning News said the Dallas Fort Worth International Airport 
became the world's busiest airport during the COVID-19 pandemic, with the 
Charlotte Douglas International Airport joining DFW as the third busiest hub 
during the lockdown. Fort Worth serves as American Airlines headquarters, with 
the airline cutting flights less than competitor carriers United Airlines and 
Delta. Sharply reduced flying has shuffled flight patterns that focus on large 
airport hubs.

   The gradual pick up in flights this week follows Wednesday's Energy 
Information Administration report showing jet fuel delivered to the U.S. market 
at its second lowest weekly rate on record, which goes back to 1991. At 385,000 
bpd during the final week of May, implied jet fuel demand was down 1.425 
million bpd or 78.7% against the corresponding week in 2019, with the lowest 
implied demand rate at 352,000 bpd for the first week of May. EIA shows days of 
forward jet fuel supply ended May 29 at a record high 73.2 days.

    

    

   Brian L. Milne, 1.402.255.8020, brian.milne@dtn.com, www.dtn.com.




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