Global oil trading companies are ramping up jet fuel exports from Asia to Europe and the United States, as widespread anticoronavirus vaccinations and relatively lower infection rates allow commercial travel to resume faster in Western countries.
The strong demand from the West has fully drawn down surplus jet fuel stored on ships around Singapore, while refiners margins for the aviation fuel a big drag on overall profits during the COVID19 pandemic have nearly trebled since endMarch.
Asia exported about 417,000 barrels per day bpd of jet fuel to Europe and North America combined in AprilMay, nearly 32 higher than 316,000 bpd for FebruaryMarch period, according to Reuters calculations based on data from oil analytics firm Vortexa.
Jet fuel volumes in floating storage facilities have consistently stayed at zero for the past four weeks for the first time since March last year, according to data intelligence firm Kpler.
There were about 313,000 barrels of jet fuel stored in ships in early May, already 90 lower compared with the same time last year, Kpler data showed.
At least 10 vessels, chartered by companies including Saudis Aramco Trading, Royal Dutch Shell, Chevron Corp and Valero are currently in transit from South Korea to the United States, ship tracking data showed, carrying about 3.3 million barrels of jet fuel for delivery this month.
A pickup in air travel in the U.S. and Europe amid falling coronavirus infection rates and possible relaxing of travel…