Jet fuel prices stop falling - next move is up as crude spikes
Jet fuel spot prices stopped their precipitous falls of recent times, as the underlying WTI crude price surged 7.7% in the week ended 23-Feb-09. Further strong gains in oil prices in the past two days suggest that jet fuel prices could begin an upward march again after big falls since the second week of Jan-09.
Jet fuel prices rose 0.4% in New York, 0.2% at the US Gulf Coast and 1% in Los Angeles, but fell 3.0% in Amsterdam and -4.5% in Singapore.
Over the past 12 months, jet fuel prices are down 56-60%, whereas the spot price of oil (WTI) has fallen by 62.1%.
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): 17-Feb-09 to 23-Feb-09
|
|
17-Feb-09 |
18-Feb-09 |
19-Feb-09 |
20-Feb-09 |
23-Feb-09 |
one week
|
12 month
|
|---|---|---|---|---|---|---|---|
|
New York Harbor |
120.65 |
119.9 |
123.97 |
124.11 |
121.1 |
0.4% |
-58.4% |
|
U.S. Gulf Coast |
116.15 |
112.65 |
118.97 |
119.36 |
116.35 |
0.2% |
-59.2% |
|
Los Angeles |
119.65 |
117.15 |
122.47 |
124.11 |
120.85 |
1.0% |
-59.0% |
|
120.86 |
118.59 |
121.39 |
119.05 |
117.23 |
-3.0% |
-60.4% |
|
|
126.07 |
119.05 |
116.07 |
119.64 |
120.43 |
-4.5% |
-56.2% |
|
|
WTI Spot |
34.96 |
34.67 |
39.6 |
39.35 |
37.66 |
7.7% |
-62.1% |
Daily jet fuel prices (kerosene, cents per gallon) at New York, US Gulf Coast, Los Angeles, Amsterdam, Singapore: 07-Nov-08 to 23-Feb-09
Fuel relief may not last
Revealing another gloomy set of industry traffic figures for Jan-09, IATA's Director General and CEO, Giovanni Bisignani, stated that the "only good news" is that fuel prices remain well below last year's level.
Large sections of the airline industry are now shrinking, which could maintain some downward pressure on jet fuel prices in coming months. But some carriers are anticipating prices will rise, as underlying crude prices increase.
Indian LCC, SpiceJet, this week predicted a 25% increase in jet fuel prices over the next six months, which, if realised, would put that country's ailing airline sector under an even tighter squeeze.