According to the latest EIA inventory data for kerosene-type jet fuel, inventories continue to rise, which is of concern to the oil industry as summer air travel typically drains these inventories.
For the week ending July 16, there were 44.974 million barrels of kerosene-type jet fuel in U.S. inventory. The demand for jet fuel is an important component of the overall demand for petroleum, as the fourth most used petroleum product in the United States. Jet fuel consumption averaged about 1.08 million barrels per day in 2020, or 6% of oil consumption, according to the EIA.
According to the Transportation Security Administration, as cited by Bloomberg, air traffic in the United States is rebounding, but it is still only 78% of what it was in the summer of 2019.
At this rate, current high inventories will not run out overnight, especially when supply chain issues cause blackouts across the West Coast, further reducing demand.
A potential fuel shortage at the Reno-Tahoe International Airport threatens air travel. The airport cites high demand for air travel, available space in the fuel pipeline and a shortage of tanker drivers as the reason for the shortage.
Bozeman Yellowstone International Airport also causes flight delays and departure problems. Officials cite increased demand for firefighting aircraft as well as supply chain issues.
And there’s more.
Jet fuel shortages in Oregon and Utah could lead to the withdrawal of firefighting planes from several airports as the wildfire season in the western United States rages on, and Arizona began reporting problems with the jet fuel supply in June.
Most analysts agree that demand for jet fuel will not return to pre-pandemic levels this year.
By Julianne Geiger for OilUSD
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