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.
Singapore light distillate stocks hit seven-week high
Singapore light distillate stocks hit seven-week high
Singapore, 22 November (Argus) — Singapore light distillate and middle distillate inventories rose to multi-week highs while residual fuel stocks fell to a three-week low for the week ending 20 November, according to Enterprise Singapore. Singapore's light distillates stocks rose to a seven-week high, boosted by increased naphtha imports and an onslaught of gasoline cargoes from Saudi Arabia into the city-state. Naphtha imports rose by 21pc on the week to 1.98mn bl. Kuwait, India, and the UAE were the top three suppliers to Singapore this week. Kuwait likely exported more naphtha to Asia this month, as an issue at its reformer resulted in more spare naphtha on hand for exports. More Saudi Arabian gasoline cargoes entered Singapore, adding to stocks. Singapore received another 800,000 bl of gasoline from the Mideast Gulf nation after already receiving similar volumes last week. Middle distillates stocks rose further to a six-week high, as jet fuel exports fell while imports rose. Swing supplies of jet fuel continued to arrive from India, with a 494,000 bl India jet fuel cargo imported into Singapore in the past week. Singapore's onshore fuel oil inventories retreated to a three-week low after climbing for two consecutive weeks, as imports fell sharply this week. But total inventories for November remained marginally higher at 17.78 mn bl,compared to 17.55 mn bl last month. Brazil, Indonesia, and Iraq were the top origin countries for fuel oil arrivals, while the majority of exports were bound for the Philippines and Hong Kong. No exports were recorded to China this week. By Aldric Chew, Asill Bardh, Cara Wong and Lu Yawen Singapore onshore stocks (week to 20 November '24) (mn bl) Volume ± w-o-w ± w-o-w (%) Light distillates Stocks 15.16 1.04 7.37 Naphtha imports 1.98 0.35 21.36 Naphtha exports 0.61 0.60 8,689.57 Gasoline imports 3.04 -0.53 -14.91 Gasoline exports 4.74 -0.35 -6.91 Middle distillates Stocks 10.27 0.63 6.56 Gasoil imports 0.61 -1.12 -64.79 Gasoil exports 3.48 1.36 63.82 Jet fuel imports 0.5 0.1 39.34 Jet fuel exports 0.20 -0.28 -58.34 Residual fuels Stocks 16.98 -1.37 -7.45 Fuel oil imports 2.19 -4.36 -66.61 Fuel oil exports 1.23 -2.04 -62.53 Source: Enterprise Singapore Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Shell will supply Brussels airport with SAF via DHL
Shell will supply Brussels airport with SAF via DHL
London, 21 November (Argus) — Shell and German logistics group DHL Express have signed a one-year deal for the supply of 25,000t of sustainable aviation fuel (SAF) at Brussels airport. Shell will deliver the SAF via pipeline to the airport. The SAF will be co-processed, meaning it will be produced in a fossil refinery by replacing fossil crude oil with renewable feedstocks. It will be certified by the international sustainability and carbon certification (ISCC) programme. DHL Express customers will be able to claim verified emission reductions (VER) carbon credits linked to the use of the SAF through DHL's book and claim model . DHL recently signed a supply agreement with US-based fuel supplier World Fuel Services for the latter to supply Miami International Airport with around 227mn l of blended SAF — 68mn l of which will be pure SAF — over a two-year period. DHL said it consumed 72,000t of SAF in 2023 for its Scope 1 operations — which refer to a company's direct emissions, becoming one of the top three SAF buyers globally. This amounts to around 15pc of global annual SAF output, based on the International Air Transport Association's estimate of around 500,000t of SAF produced in 2023. By Evelina Lungu Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
UK parliament approves SAF mandate from 2025
UK parliament approves SAF mandate from 2025
London, 6 November (Argus) — The UK parliament has approved the proposed sustainable aviation fuel (SAF) mandate that will come into effect on 1 January, 2025. Obligated suppliers will have to deliver a 2pc share of SAF in 2025, increasing to 10pc in 2030, 15pc in 2035 and 22pc in 2040. The obligation will remain at 22pc from 2040 "until there is greater certainty regarding SAF supply". The obligation arises at the point at which a supplier's jet fuel can be supplied only to UK aviation. Hydrotreated esters and fatty acids (HEFA) SAF can be used to meet 100pc of SAF demand in 2025 and 2026, but will be capped at 71pc in 2030 and 35pc in 2040. An obligation for Power-to-Liquid (PtL) SAF will be introduced from 2028 at 0.2pc of total jet fuel demand, rising to 0.5pc in 2030 and 3.5pc in 2040. Buy-out mechanisms will be set at the equivalent of £4.70/l ($6.10/l) and £5.00/l ($6.50/l) for the main and PtL obligations, respectively. "It is projected that, between 2025 and 2040, the SAF mandate could deliver up to 25mn t of SAF, securing a saving of up to 54mn t of carbon dioxide", said transport minister John Hendy. The UK confirmed on 17 July it will introduce the Sustainable Aviation Fuel (Revenue Support Mechanism) bill to support SAF production. The government previously said it aims to introduce the mechanism, which will be industry funded, by the end of 2026 . "Together with the SAF mandate, [the mechanism] will give the investment community confidence to invest in these novel and innovative technologies", Hendy said. By Evelina Lungu Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Brazil's Porto Alegre airport resumes operations
Brazil's Porto Alegre airport resumes operations
Sao Paulo, 21 October (Argus) — The Porto Alegre airport in Brazil's southern Rio Grande do Sul state resumed operations five months after record floods suspended all flights. The airport, managed by Germany's Fraport, will have the capacity to receive up to 128 flights/d, Fraport said. Initially, the airport is expected to receive 70 flights/d, with that number slated to increase to 122/d in November. Flights will still remain below previous levels. Prior to the floods, the airport had forecast that it would have 5,404 domestic and international flights and transport over 608,000 passengers in April. The airport was closed for 171 days after its terminal and runways flooded during record rainfall that devastated Rio Grande do Sul state in late April and early May. Fraport temporarily operated a reduced number of flights out of the nearby Canoas military base. Even with the closure of the Porto Alegre airport, Brazilian airlines transported over 7.9mn passengers in September, a 4.3pc increase from 7.5mn in the same month last year, according to civil aviation agency Anac. Demand for domestic flights, measured as revenue per kilometer (RPK), increased by 8.8pc in September from a year earlier. The supply of domestic flights, measured as available seat kilometers (ASK), was up by 7.1pc from a year earlier. Demand for domestic flights is up by 3.5pc in the 12 months ending in September, while supply increased by 1.7pc in the period. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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