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.
UAE air traffic recovery begins after storm disruptions
UAE air traffic recovery begins after storm disruptions
Singapore, 18 April (Argus) — Air traffic at Dubai International (DXB) has begun to recover after an unprecedented storm hit the country on 16 April, although flight delays are expected to continue. "DXB resumed inbound flights of international airlines operating out of terminal 1", a spokesperson for DXB operator Dubai Airports said on 18 April. But it urged travellers not to come to the terminal for outbound flights before confirming their flight status, as it said the access to the terminal is "strictly limited" to guests with confirmed departures. Prolonged flight disruptions at DXB, which was ranked the second-busiest airport in the world in 2023, according to the Airports Council International's preliminary ranking, could affect regional jet fuel demand. Dubai low-cost carrier flydubai said it has now resumed partial operations from DXB, having previously cancelled all of its flights scheduled to depart from Dubai on 16 April evening until 10am on 17 April. Select outbound flights were to operate from DXB's terminal 2 with scheduled operations resuming after 8pm on 17 April, it said, while flights from terminal 3 were due to resume after midnight. But Dubai-owned Emirates Airlines has extended the suspension on check-in for passengers departing DXB until 9am on 18 April, after having initially suspending it between 8am and midnight on 17 April. The airline said the extension was because of "continued operational challenges caused by bad weather and road conditions". Neighbouring Abu Dhabi's Zayed international airport said it is "operating smoothly", despite issuing a warning on 17 April that some flights might be delayed. By Ieva Paldaviciute Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
June deadline set for Citgo auction bids
June deadline set for Citgo auction bids
Houston, 17 April (Argus) — Bidders for Citgo's US refining assets have until 11 June to submit offers for the company's 805,000 b/d of refining capacity and associated assets, with a tentative sale hearing set for 15 July. Documents filed Tuesday in the US District Court for the District of Delaware set 11 June as the deadline for interested parties to submit final binding bids after non-binding bids were received 22 January. The court began the auction process for Citgo's parent PdV Holding (PdVH) in October, part of the process of satisfying debts owed by Venezuelan-state owned oil company PdV. The court will file a notice of a successful bid "as soon as reasonably practicable" following the 11 June deadline and selection of a successful bidder. No date has been set for the filing of objections to the sale or replies to the objections before the tentative 15 July hearing. The legal wrangling over Citgo is unlikely to conclude even if the Delaware court successfully executes the sale as 27 businesses have filed claims against Citgo amounting to more than $21bn. The scale of Citgo's operations in the US are also a challenge to any potential buyer. Few companies look ready to buy the company's three refineries, three lubricants plants and retail and midstream assets. The assets have been valued by various analysts anywhere between $6.5bn and $40bn, with a lofty valuation potentially deterring bidders. But the auction process itself has been the main cause for concern. Independent refiner PBF Energy's chief executive Matthew Lucey previously called the auction a "quagmire" , considering its ties to a complex geopolitical situation in Venezuela, saying he did not expect the sale to go anywhere in the near term. Marathon Petroleum expressed similar disdain. "We're not interested in the auction process," Marathon chief executive Michael Hennigan said on an earnings call in October . By Nathan Risser Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Nigeria's Dangote diesel offers cut local prices
Nigeria's Dangote diesel offers cut local prices
London, 17 April (Argus) — Nigeria's 650,000 b/d Dangote refinery has offered road diesel at the lowest price since it began distillate sales earlier this month, and market participants said this is likely to weigh heavily on local values and import markets. The refinery dropped prices for diesel, known in Nigeria as automotive gasoil (AGO), to 1,000 naira/litre (87¢/l) for a minimum of 1mn l, and offered a discount of N30/l for offtake of 5mn l and above, it said. The price changes took effect today. The N1,000/l offer equates to around $950/t for product that market participants say contains 700ppm sulphur. The move by Dangote was labelled as "very aggressive pricing" by a trader, while other sources said it "crashed the market". Local marketing companies were offering AGO at as low as N1,140/l ex-depot by the close on 16 April, according to a source, while Dangote was offering at N1,210/l. Dangote began offering AGO at around N1,200/l three weeks ago, which was a 30pc reduction from the then market levels of around N1,600/l, the company said today. The Major Energies Marketers Association of Nigeria (MEMAN) assessed ex-depot prices at the Apapa Hub in Lagos at N1,396/l on 29 February. Output from Dangote is altering Nigeria's import structures, with local high sulphur gasoil buyers captive to the refinery's supply. The refinery operator has secured an exemption from Nigeria's 200ppm sulphur product import cap , allowing it to supply its 700ppm sulphur product locally. The high sulphur gasoil offshore Lome ship to ship (STS) market was described by a market participant today as "almost dead". No bid or offer levels for 10,000-20,000t STS transfers were reported today. The most competitive offer was at a premium of $25/t against Ice May gasoil futures, for loading between the last week of April and the first week of May. Dangote refinery began selling diesel and jet to the domestic market earlier this month . A spokesman told Argus then that Nigerian product marketing companies began loading diesel and jet from the refinery onto 30t trucks and minimum 22,000t tankers. Around 70-80pc of truck loadings from the refinery are destined for areas of the country outside Lagos, according to a market participant. Dangote said today it had loaded diesel onto the 35,000 dwt tanker Golden Lavender, which appeared to make the first domestic seaborne delivery of Dangote-origin diesel and jet since the refinery started middle-distillate production, discharging on 10 April at Tincan Island, Lagos, according to Kpler. Dangote's jet output may not yet be fit for use in aviation, according to a source who said it may currently be used as dual-purpose kerosine for power and heat generation. By George Maher-Bonnett Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US' Boeing to ramp up SAF purchases
US' Boeing to ramp up SAF purchases
Houston, 16 April (Argus) — US aircraft technology developer and manufacturer Boeing plans to purchase 7.5mn USG of blended sustainable aviation fuel (SAF) and SAF certificates through Finnish refiner Neste and its partners. EPIC Fuels will supply 2.5mn USG and AvFuel will supply 1.5mn USG of the total volume with the rest delivered from Neste. The purchase includes book and claim SAF certificates corresponding to emissions from conventional jet fuel. The physical delivered product will consist of a 30pc SAF and 70pc conventional jet fuel blend. To date, Boeing's intake of blended SAF totals 9.4mn USG, supporting its ecoDemonstrator program and the company's commercial operational flights through 2024. The company has made similar purchases in recent years as well as supported SAF development through capital funds organized by leaders across the aviation industry. By Matthew Cope Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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