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.
Kuwait reports drone strikes at airport fuel tanks
Kuwait reports drone strikes at airport fuel tanks
Dubai, 8 March (Argus) — Two fuel storage tanks at Kuwait International Airport were targeted in a drone attack early on Sunday, causing a fire and damage but no casualties, authorities said. The tanks are operated by Kuwait Aviation Fuelling (Kafco), the airport's sole jet fuel supplier, which sources the fuel through pipelines from state-owned KNPC's 346,000 b/d Mina al-Ahmadi and 454,000 b/d Mina Abdullah refineries. Kafco supplies more than 1bn litres/yr (17,000 b/d) of fuel to commercial airlines, military flights and government agencies operating at the airport. There was unspecified damage to property but no injuries were reported in initial assessments, state-owned news agency Kuna cited authorities as saying. Earlier on Sunday, Kuwait's armed forces said air defences had intercepted three ballistic missiles that entered the country's airspace and responded to a wave of drones, including those that directly struck the airport fuel tanks. The airport strike follows a previous drone-related incident in Kuwait on 28 February, when debris from an intercepted drone landed near Shuaiba port. US and Israeli attacks on Iran starting on 28 February have triggered retaliatory attacks by Tehran on targets across the Mideast Gulf, including key energy facilities. Kuwait's state-owned oil firm KPC said on 7 March that it had begun reducing crude production and refinery operations after oil exports were effectively halted by the war. It issued a force majeure on crude and refined product exports later the same day. The headquarters of the Public Institution for Social Security in Kuwait was targeted in a separate incident early on Sunday, causing material damage to the building, the institution said. By Rithika Krishna Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US Gulf coast jet fuel prices at 44-month high
US Gulf coast jet fuel prices at 44-month high
Houston, 5 March (Argus) — US Gulf coast jet fuel prices reached a 44-month high on Thursday as the US-Iran conflict reached its sixth day and China said it plans to halt exports of clean products. Colonial pipeline 54-grade jet fuel prices climbed by 63.05¢/USG to close at $4.13/USG, the highest price since 22 June 2022. Bids and offers surfaced in the session between April ultra-low sulphur diesel (ULSD) Nymex +50¢/USG and +96¢/USG, increasing cash differentials by 31¢/USG. The April ULSD Nymex contract settled at $3.61/USG, the highest since 15 November 2022 and a $1.02/USG gain from 27 February, the day before the US and Israel launched airstrikes on Iran. The National Development and Reform Commission (NDRC), China's top regulator , has told oil firms to halt exports of clean products, including jet fuel, to ensure domestic supply unless they give special reasons. The NDRC verbally asked companies to stop signing new contracts and try to cancel shipments already sold but not loaded as of 4 March. In Europe, the Mideast Gulf accounts for more than 50pc of jet fuel imports, according to Kpler and Vortexa data, while Europe has become structurally tighter on jet fuel supply. Iran's de facto closure of the strait of Hormuz has bolstered jet fuel demand from the US Gulf coast, according to a market participant. The US has offered naval convoys for ships transporting energy and other commodities through the Mideast Gulf, but there is doubt that this would happen soon according to many in the shipping industry. Many insurers have also cancelled war-risk cover in parts of the Mideast Gulf and the Gulf of Oman, essentially halting commercial transits through Hormuz. Prior to the beginning of the conflict, US Gulf coast jet fuel inventories settled at 13.6mn bl on the week ended 27 February, up by by 0.7mn bl from the prior week but down by 1.9mn bl compared with the same week in 2025. By Hunter Fite Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
European jet fuel doubles crude price due to war
European jet fuel doubles crude price due to war
London, 5 March (Argus) — Jet fuel in northwest Europe traded at more than twice the prices of North Sea crude on 5 March, extending its record premium for a third consecutive day, as the war in the Mideast Gulf causes extreme volatility the jet fuel market. Cif northwest European jet fuel held an $87.96/bl premium to the North Sea Dated benchmark crude basket and a $90.97/bl premium to front-month Ice Brent futures on Thursday, Argus assessments show. North Sea Dated and front-month Ice Brent futures were assessed at $87.74/bl and $84.73/bl, respectively. Premiums to crude — also known as refining margins or cracks — hit what was then a record high of over $70/bl on 3 March , before volatility in the market deepened on Wednesday . Price visibility collapsed on Thursday , with market participants unable to agree on levels because of the volatility, they said. Jet fuel cracks in Europe are now more than 200pc higher on the month and over 350pc higher on the year. Even though broader product supply has come under threat because of the war in the Mideast Gulf, jet fuel prices have taken off in a manner like never before, market participants said. For comparison, jet fuel roughly holds a $25/bl premium to diesel at the moment — it was trading at around a $2-4/bl premium to diesel last week, and at a discount this time last year. The Mideast Gulf accounts for more than 50pc of Europe's jet fuel imports, Kpler and Vortexa data show, while Europe has become structurally tighter on jet fuel supply. No jet fuel has passed through the strait of Hormuz, which Iran claims to have shut, since the war broke out on 28 February. At least two tankers that were set to load in the region have since turned away . Refineries are likely maximising jet fuel output because of the situation and wide margins, market participants believe, although this will not be enough to replace Mideast Gulf supply. But they stressed that jet fuel values have completely detached from fundamentals. Although they were reluctant to make short-term forecasts on the jet fuel market given the volatility, they agreed that values will rapidly drop if the conflict de-escalates. By Amaar Khan Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Iran war collapses visibility in European jet market
Iran war collapses visibility in European jet market
London, 5 March (Argus) — Extreme volatility triggered by the war in the Mideast Gulf has collapsed price visibility in the European jet fuel market, leaving participants unable to agree on price levels, traders told Argus at Thursday's close. "No one knows" what level to trade jet fuel in Europe because the paper market is moving too quickly, one European trader said. Another described the market as "stupidly wild" and "incredibly unclear". Two traders said over-the-counter liquidity still appears robust, but bid-offer ranges had blown out, creating large intraday discrepancies in swap values. Argus received March jet swap indications between $280/t and $450/t on Thursday. Argus assessed the March swap at a $330/t premium to front-month Ice gasoil futures, up by $50/t from the previous close, based on market indications. Jet swaps have been breaking records since Tuesday. Several other jet spreads are also at all-time highs. Jet fuel is trading at more than twice the price of Ice Brent and over $20/bl above diesel. The conflict is threatening supply routes and disrupting tanker movements, putting up to 50pc of European jet supply at risk. Even so, traders say jet values have broken away from fundamentals, with many describing the market as "crazy". By Amaar Khan Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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