Jet fuel prices ease as oil prices decline
Oil prices have continued the run of steep declines over the past week, as soft demand, particularly in the US, keeps futures low. Weakness in demand has been felt most keenly in gasoline, where US stockpiles are approaching an eight-year peak. Gasoline stocks rose by 2 million barrels (an increase of just under 1%), while other distillate fuel inventories (including jet fuel) rose by 400,000 barrels to 157.5 million barrels.
Weakness in demand has been felt most keenly in gasoline, where US stockpiles are approaching an eight-year peak. Gasoline stocks rose by 2 million barrels (an increase of just under 1%), while other distillate fuel inventories (including jet fuel) rose by 400,000 barrels to 157.5 million barrels.
Crude oil supplies continue to decline however, with US stockpiles down by 3.9 million barrels for the week ending 22-Jan-2009, as refineries slow production and retire capacity. US refinery capacity reportedly hit an adjusted 20-year low (excluding natural disasters) earlier in Jan-2010 and refinery levels are expected to remain low through Feb-2010.
Continued questions about the pace and extent of economic recovery in Europe and the US are keeping oil demand low. Weaker than expected US economic indicators and US President Obama's focus on job creation and small/medium business stimulus in his State of the Union Address have contrasted with better sentiment on the US economic outlook by the US Federal Reserve.
A stronger US dollar has also done its part in keeping crude prices low.
Oil contracts towards USD70 per barrel
Crude oil prices dipped to USD74.67 per barrel, a 5.5% decline for the week to 26-Jan-2010.
WTI spot price: Jan-2009 to Jan-2010
Source: Centre for Asia Pacific Aviation & US Energy Information Administration
With US jet fuel stocks rising, US prices retreated relatively moderately. New York Harbour was down 3.3%, but finished the week above USD200 cents per gallon, while Los Angeles and US Gulf Coast prices both dipped under 200 cents, for the first time in five weeks.
Amsterdam-Rotterdam-Antwerp exchange prices dipped 5.9%, touching 193 cents per gallon, while Singapore prices were also down at 193 cents, down 3.8%.
Major oil market movements, USD cents per gallon
Source: Centre for Asia Pacific Aviation & US Energy Information Administration
Daily jet fuel prices (kerosene, cents per gallon) at New York, US Gulf Coast, Los Angeles, Amsterdam, Singapore: 01-Jun-2009 to 26-Jan-2010
|
19-Jan-10 |
20-Jan-10 |
21-Jan-10 |
22-Jan-10 |
25-Jan-10 |
26-Jan-10 |
one week Change |
12 month Change |
|
|---|---|---|---|---|---|---|---|---|
|
New York Harbor |
207.85 |
204.86 |
203.56 |
198.74 |
202.25 |
201.03 |
-3.3% |
38.8% |
|
U.S. Gulf Coast |
204.35 |
200.61 |
198.81 |
193.99 |
196.5 |
196.35 |
-3.9% |
40.4% |
|
Los Angeles |
205.6 |
202.36 |
200.56 |
195.99 |
198.25 |
198.1 |
-3.6% |
39.7% |
|
205.46 |
202.44 |
198.51 |
194.28 |
193.68 |
193.38 |
-5.9% |
38.4% |
|
|
201.55 |
202.26 |
201.43 |
198.21 |
193.21 |
193.81 |
-3.8% |
45.7% |
|
|
WTI Spot* |
78.98 |
77.42 |
75.84 |
74.25 |
74.9 |
74.67 |
-5.5% |
60.6% |