Jet fuel
Overview
Jet fuel market volatility, whether from crude prices, supply issues from refining capacity, or ongoing regulation changes, is a continual risk to your bottom line.
Having a choice in fuel pricing is the best way to mitigate risk and stay on top of market changes. Argus constructs price indexation in a way that is appropriate for each market. By doing so, market participants can align their day-to-day operations, improve management of fuel costs and directly impact their net earnings.
Jet fuel makes up more than 40% of an airline’s total operating expense. The rise in importance of sustainable aviation fuel (SAF) from government mandates and self-regulations from airlines has a direct implication on these operating costs.
Argus helps the jet fuel market participants to make informed decisions and optimize their strategies with price assessments and information on deals done for conventional jet fuel and SAF, as well as the latest market-moving news, in-depth analysis, supply and demand dynamics, and price forecasts.
Latest jet fuel news
Browse the latest market moving news on the global jet fuel industry.
New strike on Riyadh airport kills 12, injures 309
New strike on Riyadh airport kills 12, injures 309
Dubai, 11 October (Argus) — A strike on King Khalid International Airport in Riyadh has killed at least 12 people and injured 309, Saudi Arabia's General Authority of Civil Aviation (GACA) said early on Sunday. Saturday's attack was the third on the airport over the past week and the deadliest single attack in any Gulf Co-operation Council (GCC) country since the US-Iran war began in late February. A source with knowledge of the situation said the attack targeted passenger terminal 3, which is used for domestic flights. Operations at the airport were temporarily suspended, GACA said. The dead included four Saudi citizens, two Bangladeshis and one national each from the US, Egypt, Jordan, Syria, Palestine and Sudan, GACA said. Some of the 309 injured were in a "critical condition", it said. The attack came a day after Yemen's Houthi rebels declared an air blockade of Riyadh airport, saying only humanitarian flights that had secured approval from the Houthi authorities would be permitted to land or depart. Houthi military spokesman Yahya Saree reiterated that guidance on social media platform X around the time of Saturday's attack. In a subsequent statement on Sunday, Saree renewed warnings against using Saudi airports and airspace, saying they remained exposed to attack by Houthi forces. He said the warning did not apply to airports serving Mecca and Medina, and that the group would continue its policy of "airport for airport, siege for siege, and escalation for escalation" until it achieved its objectives. The Houthis have carried out a series of attacks on Saudi energy infrastructure and airports in recent weeks as fighting intensifies between the group and forces aligned with Yemen's Saudi-backed internationally recognised government. The latest attack brings the death toll from missile and drone strikes on Saudi airports to at least 18 this week. Two attacks on Riyadh airport on 9 October killed three people, including a pilot who worked for national carrier Saudia, while attacks on Riyadh and Abha international airports on 6-7 October killed another three. The Saudi-led coalition, which has backed the Yemeni government in its fight against the Houthis for more than a decade, separately said a projectile had fallen near King Fahd International Airport in Dammam, on Saudi Arabia's east coast. Shortly after the Riyadh airport attack, US president Donald Trump was asked whether Washington would consider joining Saudi military action against the Houthis. Trump said the US "may" join and that his administration would "make a decision" soon. "We move very quickly," he said. By Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US Gulf VLCC freight rates hit record highs
US Gulf VLCC freight rates hit record highs
New York, 7 October (Argus) — Freight rates for very large crude carriers (VLCCs) loading on the US Gulf coast (USGC) soared to historic highs today as Asia-Pacific buyers continue to scramble to secure barrels to maintain their refined products output. A charterer put a Sinokor-owned VLCC on subjects for a US Gulf coast to Asia-Pacific voyage loading from late November at $81mn lumpsum today, the highest recorded rate on the route since Argus began assessing it in 2017. The deal represented a $17.75mn jump day-over-day for the rate on the route, dwarfing that rate's pre-Iran war high of $22.5mn by over $63mn. That deal was the latest after a run-up in freight rates from steady activity over the course of the day, with another charterer putting the Sea Jade VLCC on subjects for a US Gulf coast-South Korea voyage loading from early November at $77mn. Strong Chinese crude restocking demand, which kicked off in late September, is fueling the rally in crude freight rates globally as Chinese refiners look to supply high refined products demand from throughout Asia-Pacific, with Mideast Gulf flows mostly off line. This wave of demand hit Aframaxes and Suezmaxes first, ballooning rates for these segments to their own all-time highs before sweeping back to the already elevated VLCCs after savings offered by the midsize segments shrunk. Charterers put only three VLCCs on subjects within the spot market for US Gulf coast-loading voyages in the second half of September, compared to the deluge of midsize tanker shipments in that period. Iranian attacks on shipping within the strait of Hormuz are tightening VLCC supply overall by not only creating longer, inefficient alternative voyages but also by trapping VLCCs within the Mideast Gulf itself. At the same time, a "shuttle service" of VLCCs by operators capitalizing on very high freight rates for transiting via the strait of Hormuz to transfer crude onto tankers waiting just outside the waterway has further reduced the size of the global fleet. What were once single VLCC shipments of crude from the Mideast Gulf now involve multiple vessels, with the additional waiting time these ships need to complete transfer operations within a rapidly changing environment creating inefficiencies for every vessel segment engaged in the trade. Meanwhile, some of these inefficiencies are holding up individual VLCCs for a month of extra travel time. A charterer put the DHT Opal VLCC on subjects today for a Yanbu, Saudi Arabia, to South Korea voyage loading from late October at $73.9mn. Notably, this shipment will require the vessel to transit north via the Suez Canal, travel west out of the Mediterranean and around the bottom of Africa to then complete its journey because of the threat of Houthi attacks within the Red Sea on Saudi shipping. The typical voyage via the strait of Bab el-Mandeb would take around 23 days, but this new routing instead requires over 50 days. There are 29 VLCCs actively carrying Saudi crude from either Yanbu or Sidi Kerir, Egypt — the latter port from where Saudia Arabia has been shipping crude for export via the Sumed pipeline to bypass the Suez Canal — into Asia-Pacific via this route to avoid Bab el-Mandeb on 7 October, Vortexa data show. By Ross Griffith Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Houthis claim Saudi airspace unsafe: Update
Houthis claim Saudi airspace unsafe: Update
Updates with details throughout London, 5 October (Argus) — Yemen's Houthis on Monday threatened to target all civilian flights using Saudi Arabia's airspace, after the militant group appeared to be losing ground in the latest bout of fighting of the country's civil war. In a social media post the Houthi military headquarters claimed that it carried out an attack on the King Khalid airport in Riyadh and other civilian airports in Saudi Arabia and that, further, it attacked Saudi Aramco's Rabigh refinery on the Red Sea coast. There has been no independent confirmation of those claims. The warning follows a large-scale offensive against the Houthis by Yemen's internationally recognised and Saudi-backed government, which said it had made some gains against the Houthis. The Houthi militants warned "all international airlines using Saudi airspace to cease their flights, as it has become an operations zone for our forces." But Saudi airspace remains open and commercial flights continue to operate as of 20:30 GMT on Monday, according to Flightradar24.com flight-tracking data. Saudi aviation regulator GACA and air navigation provider Sans have announced no operating restrictions. But the European Union Aviation Safety Agency (EASA) last week advised airlines to avoid parts of the Jeddah flight information region in Saudi Arabia because of escalating Houthi missile and drone attacks. Jeddah airport remains open. The US Embassy in Riyadh issued an updated travel advisory on Monday, advising of "the potential for aerial drone or missile attacks on Saudi Arabia". President Donald Trump's administration so far has declined to announce provision of air defense and other military support for Riyadh, despite the Houthis' attacks on the Saudi energy infrastructure. "It'll all work out very well," Trump told reporters at the White House on Monday, about the Saudi-backed offensive against the Houthis. "The US has a defense and security agreement with Saudi Arabia and we intend to live by it," secretary of state Marco Rubio said at a briefing in Washington on Monday, but he added that "I won't discuss details further than that". But Turkey and Pakistan, which signed an informal defense alliance with Saudi Arabia last month, indicated on Monday that they may provide military support for Riyadh. A joint statement by the three countries on Monday pledged to "move immediately" to take "the necessary measures to provide the agreed military forces and resources and ensure their rapid deployment in the Kingdom". By Andrey Telegin and Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Air, sea sustainable fuel tipping points still far off
Air, sea sustainable fuel tipping points still far off
Strong global policy is needed to change sustainable shipping fuel economics, writes Michael Ball Washington, 2 October (Argus) — Significant work remains to transition the world away from fossil fuel in aviation and shipping, despite repeated support pledged at UN climate talks. The need to ramp up the use of alternative fuels will be a focus of the UN's Cop 31 climate summit next month in Antalya, Turkey. The host wants countries to join a new pledge to boost electricity to 35pc of all global final energy consumption by 2035, up from about 20pc currently. Last year's host, Brazil, has its own initiative to quadruple global output and use of sustainable fuels, including biofuels, by 2035. And past Cops have produced other pledges to reduce emissions in aviation or shipping. But alternative fuels have not yet reached their tipping point, accounting for less than 1pc of the fuel used in aviation or shipping globally. Cost and politics remain two of the major roadblocks. The sustainable aviation fuel (SAF) industry has shown signs of growth. Major fuel users, including Delta Airlines and FedEx, have recently extended and expanded SAF offtake agreements . And production is on the rise. For example, Neste, the leading producer of SAF, currently has production capacity of 1.5mn t/yr, which it plans to grow to 2.2mn t/yr in 2027, or about 750mn USG. But SAF still makes up a small, but growing, sliver of fuel use. Suppliers in the EU blended nearly 3pc into jet fuel last year , surpassing the bloc's 2pc mandate in its first year. In the US, SAF accounts for roughly 1pc of jet fuel supply, although the US EIA expects that to soon reach about 2pc. Global production this year is set to exceed 790mn USG, up by 26pc on the year, according to the International Air Transport Association. The story is similar in shipping. Globally, ships of at least 5,000 gross tonnage used more than 223mn t of fuel oil in 2024, about 92.5pc of which came from heavy fuel oil, light fuel oil or diesel, according to International Maritime Organization (IMO) data. Only about 0.8pc came from "other" fuels, despite biofuels jumping to more than 1.2mn t from less than 400,000t in 2023. But the slow pace of fleet turnover, and the need for more engines that can use alternatives, means that the course the industry plots over the next few years could determine whether it can meet the IMO's goal of net zero emissions by 2050, according to a recent report from the Global Centre for Maritime Decarbonisation (GCMD). Cost calculations Cost remains a major hurdle to greater SAF use in aviation and shipping. SAF can reduce emissions under the International Civil Aviation Organisation's Carbon Offsetting and Reduction Scheme for International Aviation (Corsia) system, which seeks to offset any growth in aviation CO2 above 85pc of 2019 levels. But using Corsia carbon offsets currently costs significantly less. Argus assessed Corsia phase 1 credits at $12.45/t this week, compared with an abatement cost as high as $310/t for the US west coast. In other parts of the world , the cost of abating 1t of CO2 equivalent in emissions by using SAF instead of jet fuel is even higher. In shipping, GCMD says strong global policy is needed to change the economics of sustainable fuels, as national and sub-national efforts will fall short. At the top of the list is the IMO-proposed carbon pricing system, the adoption of which was delayed last year in the face of US opposition. IMO pledged to try again this year. The agency will meet next month to consider next steps toward achieving its greenhouse gas emissions goals. "Achieving a price signal of this magnitude will be challenging, but without it, the economics are unlikely to support the transition to new fuels at scale," the GCMD said. Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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