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The amount of jet fuel produced by US Gulf Coast refiners reached its highest level ever recorded during the week ended November 18, Energy Information Administration data showed Wednesday.
Gulf Coast jet output climbed 24,000 b/d to 946,000 b/d, reaching its highest level since EIA began reporting it in 1990.
«Probably one of the reasons [I am] hearing jet getting smoked,» said a jet trader.
S&P Global Platts assessed benchmark Gulf Coast 54 grade jet fuel on Colonial Pipeline at the NYMEX December ULSD futures contract minus 13.50 cents/gal Tuesday, unchanged from Monday.
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Airlines have been ramping up service heading into the Thanksgiving holiday weekend, and that was reflected in jet fuel demand figures last week.
EIA said product supplied, which measures demand, climbed 374,000 b/d to 1.92 million b/d. That marked its highest level since reaching 1.96 million b/d on October 20, 2000.
November 18, marked the start of the airlines’ Thanksgiving travel season. Airlines for America predicted that 27.3 million passengers will travel on US airlines through November 29, a year-on-year increase 2.5%.
The airlines have added capacity to accommodate the increased demand.
«Thanksgiving has traditionally been the airline industry’s highest revenue days of the year,» said Cowen and Company aviation analyst Helane Baker. «We are concerned when capacity growth exceeds expected demand growth, as is forecast this year.»
On the West Coast, EIA reported that jet inventories dropped 696,000 barrels to 7.67 million barrels last week. The last time they were lower was when they fell to 7.57 million barrels on June 19, 2015.
Los Angeles jet fuel was assesed at NYMEX minus 1.25 cents/gal Tuesday, unchanged from Monday.
–Daron Jones, daron.jones@spglobal.com
–Edited by Derek Sands, derek.sands@spglobal.com
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