Time to Stock Up

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Jet Fuel Stocks Continue To Rise As Production Outpaces Demand

Despite a marked rise in U.S. air travel numbers this year compared to 2020, jet fuel inventories have climbed in recent months as refiners boosted production, while jet fuel demand is still lower than pre-pandemic levels.

Refiners in the United States have raised jet fuel production by almost 8 percent, or 102,000 barrels per day (bpd), since the first week of May, the Energy Information Administration (EIA) said on Wednesday.

However, as of July 23, the combined total U.S. jet fuel inventory was 9.9 percent higher than the five-year (2016–2020) combined average due to increased jet fuel production and lower product supplied.

26 Replies to “Time to Stock Up”

  1. They are probably ramping up thinking that jet travel is going to resume to pre-Covid levels. My guess is that they are mistaken about that.

    1. Some other factors likely at work here … the first thing I thought of was that the refiners likely erred on the too much rather than too little for jet fuel when refining the crude. Also the refiners may have over produced kerosene / jet fuel so they could stock pile it before switching to heating oil for the winter heating season.
      But on further thought I suspect it is down to what comes off the distillate tower cheaply & easily as they max the production of gasoline and demand for gasoline has been high in the US (not sure about Canada) … so basically they max gasoline production and live with the jet fuel surplus knowing demand for jet fuel is always going to be there and they have the capacity to store a lot of it. Note u can’t refine the entire barrel of crude into gasoline or diesel …. there are other products that come off as you produce what u really desire but there is a lot of tweaking that can occur to produce more of the needed products.

  2. price ?? as measured in unicorn farts or ounces of gold
    locally, houses are selling for 10x their former prices..
    measured in gold, they have fallen in value

    1. I’m hoping mortgage rates fall below 1% … then I can sell my house for at least $1M more deflated dollars! Whoppee!

  3. Don’t I recall hearing that firefighting missions in Ontario were being restricted by a lack of aviation fuel, specifically Jet-A for the Hercules water-bomber turboprops a couple weeks ago? Did I hear them say that, or was it my brain having a brainfart?

    1. Maybe all that jet fuel is reserved for “Special Customers”, like the ones who flew from all parts of the world to attend a recent 60th birthday party for another “Special”?

      1. Most CL-215s have been converted to the-415 turboprop, so they also need Jet-A

  4. If inventories are high and demand is low…prices should fall and that should translate into lower airfares for consumers. Why aren’t we seeing that? According to the Platts Jet Fuel index the price of Jet fuel is higher now than it’s ever been.
    This makes no sense.

    1. burton, Thinking it should make sense, is your first problem. The second is, understanding why you think it should make sense. After all, we are living in an Alice in wonderland existence.

      If only it were just about Jet fuel supplies….sigh!
      Lewis Carroll, and George Orwell, must have collaborated on their books. That’s the only way this dystopian reality makes any actual “sense”!

    2. You should see the price of 100LL: at my local airport it is $2.50/litre!!

      Don’t buy an airplane to save money.

      1. Yup , worse than a boat.
        50 plus year old machinery selling for more then what they cost new.
        But great when needed for a bug out in a hurry to put huge distances between you and Chaos.

  6. I wonder how many of those Boeing 737-Max 8’s that were grounded between Mar-19 to Dec-20 have seen much airtime since the initial grounding? You gotta believe that airline execs have been chugging bottles of Pepto for over a year. Now that Fauci has crossed the Covid Rubicon by pushing the narrative of an as-of-yet unknown post-Delta variant that will be far deadlier than ever created solely by uncooperative unvaccinated heathens those execs might be ready to graduate to drinking moonshine and calling it a day. There is no middle ground with these masked freedom stealing bureaucrat bandits.

    1. “How many waves or variants before it’s over, Dr. Tam?”

      “How many do you want, Mr. Trudeau?”

    2. I’d be more worried about pilots meeting their medical requirements, to maintain their flying status, especially when COVID shots are probably now required.

      1. If they’re white pilots they’re racist, unfairly privileged for learning to fly and flying was culturally appropriated anyways from the aboriginal boomerang. Expect BLM to burn the Wright Flyer in effigy next week with special guests VP Harris pouring in some surplus jet fuel and Big Chief Chicken Jerky dropping by from Ottawa with his woke media band to fan the flames of intersectional diversity equitable inclusiveness. Flying for pale faced non-government entities will be strictly Verboten.

  8. The border services are planning on striking this month as well. This will affect not only airports, but postal and shipping services.

  10. Well given Virtually Every AirLine on the Planet has MANDATED ALL CREW to be fully vaccinated….??

    ….1 crash will Bring the entire Global fleet & subsequently the entire industry to “screeching” halt….

    So far 4 from British Airways & 5 from Jet Blue have been lost after the VidVax….

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