Jet fuel prices near peak as production declines
The decline in production and seasonal supply balances continue to create cost pressure on the airline sector.
Last week's drop in jet fuel production to its lowest level since early March has heightened concerns that prices could rise further.
Production Decline and Supply Levels
Last week, jet fuel production fell to its lowest level since early March and supply is approaching normal seasonal levels, which means prices could rise even further.
Cost Pressure on the Sector
The crisis earlier in the year drove up plane ticket prices and created significant pressure on airlines. This situation was one of the reasons why Spirit Airlines permanently halted its operations in the US.
Regional Price Increases
In some parts of the US, the price of jet fuel approached its highest level since the US-Iran war began, bringing cost concerns back to the agenda for airlines and passengers.
Current Gallon Prices
As of Thursday, the price of jet fuel was $4.55 per gallon on the Gulf Coast and $4.75 per gallon in New York.
Global Energy Market Trends
In global energy markets, diesel and jet fuel prices are moving very closely together, and fluctuations in the market are being closely monitored.