Jet Fuel: Smoother Landing For Prices Expected


The prices of jet fuel are expected to trend downwards, alongside an expected softening of crude oil prices in the next five years. Nonetheless, this decline will be tempered by a better outlook for both air transport and shipping with economic recovery in the US and Europe, though a more cloudy outlook for Asia underpins our projections for prices in Singapore to experience a faster rate of decline than in Rotterdam and New York.

Better Outlook Tames Price Fall

Jet fuel is trending downwards alongside the fortune of crude oil prices. However, a pick-up in air traffic activity - seen in recent months - will likely see a smaller decline in jet fuel prices vis-à-vis bunker fuel in 2014. IATA continues its optimism regarding air transport growth. It noted a 'strong start' to 2014 for both air freight markets and passenger demand, a trend the IATA is optimistic will continue throughout the year on the back of economic recovery, especially in Europe and the US.

A Flying Start To The Year
Air Freight Y-o-Y Growth In First Two Months Of 2014 (%)

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This article is tagged to:
Sector: Oil & Gas, Freight Transport

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