Jet fuel prices drop amid spread of coronavirus
Updated: Mar 10, 2020
During the week ending March 6, jet fuel price ended down 6.9% at $54.3 per barrel compared to the week prior, according to data from the International Air Transport Association (IATA), as demand for jet fuel continues to plummet amid COVID-19 fears.
This price, which is down 18.1% from the same period a month ago and 32.4% from a year ago, represents a projected $19.2 billion decrease in the global 2020 jet fuel bill, according to IATA.
During the four-week period ending Feb. 28, U.S. jet fuel consumption was down 5.5% from the same period a year ago, according to the Energy Information Administration.
“What we know for sure is that the month of February will record the worst oil demand contraction since the Great Recession,” said Claudio Galimberti, head of demand, refining and agriculture analytics at S&P Global Platts, in a note late last month.
Galimberti added that global aviation will experience a significant hit across Asia which will require months of recovery.
Dealing another blow to the oil markets today, Saudi Arabia began a price war during the weekend, creating a rift between the OPEC cartel, which it leads, and Russia, another top exporter. As a result, Brent crude futures posted their worst day since 1991, dropping 24.1% to settle at $34.36 per barrel.
U.S. West Texas Intermediate crude slipped 24.59%, settling at $31.13 per barrel — its second worst day on record.