Jet fuel prices in Singapore, Asia’s main commodity trading centre, are rising and indicate a potential rebound in air passenger demand in East Asia, according to data from S&P Global Platts.
Following a fall of 84% in the free-on-board (FOB) price of Singapore jet fuel in April when it hit a record low of $13.06 a barrel on April 22 it has since rebounded to just shy of $40 a barrel on June 5 - a 202.8% spike from the April low, according to S&P Global Platts data.
According to S&P Global Platts, this a similar move in both the derivatives and jet fuel crack spread – the difference between its price and crude – markets all point to a resurgent demand by airlines in East Asia.
“Major airlines in North Asia have eased flight restrictions as countries endeavour to revive sagging demand in their coronavirus-stricken economies, lending some support to jet fuel refining margins and price differentials, as well as offering a glimmer of hope to the aviation sector, ravaged by swathes of layoffs as planes remain grounded,” said S&P Global Platts.