Jet Fuel Prices Up 23% In August As Asia’s Passenger Numbers Spike

With global crude oil prices comfortably above $80 per barrel, it was only a matter of a trading session or two before the uptick was reflected in the distillates market. But the visible spike in the price of one product – jet fuel – is not just down to Saudi Arabia and Russia’s crude oil production cuts totalling 1.3 million barrels per day (bpd).

According to International Air Transport Association (IATA) and S&P Global Commodity Insights data, jet fuel prices averaged $119.82 per barrel for the week ending Friday (August 4, 2023) compared to $97.78 for the week ending July 7, 2023. That’s a near 23% rise in less than a month. And squaring a $119.82 price against the corresponding week’s closing dated Brent crude oil price of $85.55 per barrel would indicate a weekly average crack spread of $34.27.