Singapore — Global jet fuel prices are for travelers’ crude oil with concerns about supply shortages, airline criticism and sharp rises in costs, just as air travel has begun to recover from COVID-19 limits. With the rapid increase, it soared to a high price of nearly 14 years.
Oil prices have skyrocketed to their highest since 2008 as supply lags behind recovery in global demand and the United States is considering banning Russia’s oil imports following Moscow’s invasion of Ukraine. did.
Since the Russian army invaded Ukraine on February 24, Brent, the world’s crude oil benchmark, has soared 26% to over $ 120 a barrel to secure a replacement for Russian crude oil at risk of sanctions. Caused a global battle for importers.
Crude oil competition has pushed up the prices of refined products that would be affected if oil supplies were tight, with Singapore’s jet fuel prices surpassing Brent since February 24 and rising nearly 35%, the first barrel since July 2008. Reached $ 150.
Jet fuel prices in Europe and the United States have recorded similar rises, with global airlines already hit by COVID-19 in the last two years to pass on higher costs through fuel surcharges and fare increases. Must be.
Similarly, fare increases run the risk of undermining the recovery of air travel, which is gaining momentum as border restraints are eased.
“Travel (by plane) will never be cheaper. Cross-country inflation will make most people have shallower pockets and lower disposable income,” said a Singapore-based jet fuel trader. I am saying.
She says more travelers will limit their plans to “necessary” trips, and pandemic-related restrictions-many places still need a negative COVID test-those travelers. Said added to the uncertainty of.
According to airline data company OAG, global airline capacity fell 0.1% this week to 82 million seats, 23% below the corresponding week in 2019 before the pandemic.
Total airline capacity scheduled for the week to Monday in Northeast Asia was down 4.5% from the previous week compared to any other region, but international capacity with this region is in 2019. 88% less than the week you do.
US domestic schedules have been on track to exceed 2019 levels this spring, but high fuel and ticket costs run the risk of slowing that momentum.
“Airlines will be pushed up credit lines again and suppliers will be willing to give unsecured terms. London-based trade sources will see a more positive recovery after COVID. , Further casualties may occur. “
According to Refinitiv Eikon data dating back to 2009, the Asian refining margin for jet fuel on Monday jumped to $ 26.17, surpassing Dubai Crude. This is the highest level ever.
By Koustav Samanta