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Jet fuel price volatility returns

3-Apr-2009

Oil and jet fuel prices have spiked up again, as significant volatility returns to energy markets on mixed economic data. The last spike in the oil price - at the start of 2009 - was followed by steep falls, which took to oil price back to 2004 lows.

Underlying crude prices (WTI) fell 8.6% in the week to 30-Mar-09 and jet fuel prices eased correspondingly by 8.8% over the same period in New York, -7.7% at the US Gulf Coast, -8.2% in Los Angeles, -8.2% in Amsterdam and by 0.6% in Singapore.

But oil prices have spiked overnight by 8.8% to USD52.64 per barrel in New York on 02-Apr-09.

Daily jet fuel prices (kerosene, cents per gallon) at New York, US Gulf Coast, Los Angeles, Amsterdam, Singapore vs Crude Spot price (WTI, USD per barrel): 23-Mar-09 to 30-Mar-09

 

23-Mar-09

24-Mar-09

25-Mar-09

26-Mar-09

27-Mar-09

30-Mar-09

one week
Change

12 month
Change

New York Harbor

152

153.47

151.4

153.25

147.95

138.64

-8.8%

-59.9%

U.S. Gulf Coast

144.75

146.22

145.65

147

142.2

133.64

-7.7%

-57.4%

Los Angeles

151.5

150.97

148.15

151.25

147.33

139.14

-8.2%

-56.3%

Amsterdam-Rotterdam-Antwerp

147.75

149.56

147.45

148.81

145.56

135.67

-8.2%

-56.9%

Singapore

141.79

147.21

148.74

150.05

149.33

141

-0.6%

-54.5%

WTI Spot

53.05

53.36

52.24

53.87

52.41

48.49

-8.6%

-54.1%

Daily jet fuel prices (kerosene, cents per gallon) at New York, US Gulf Coast, Los Angeles, Amsterdam, Singapore: 25-Nov-08 to 30-Mar-09

Oil prices find floor - IATA

IATA is more confident in its assessment, stating that oil prices have found a floor, due to output cuts and the weak global economy, which is being propped up by government economic stimulus packages.

Jet Fuel and Crude Oil Price ($/barrel)

The industry body observed, in its latest Airline Financial Health report this week, that crude oil prices have been relative stable so far this year, "although a further downward leg cannot be ruled out until a firm economic recovery is in sight". IATA added, "recession has eased pressure on refinery capacity and the ‘crack spread' has narrowed sharply bringing spot jet fuel prices down further than crude oil prices.

Over the past 12 months, jet fuel prices are down by around 55-60%, whereas the spot price of oil (WTI) has fallen by 54.1%.


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