10 June 2010 20:35 [Source: ICIS news]
HOUSTON (ICIS news)--US jet fuel prices usually surge through June with the start of the summer travel season but this year prices will likely fall short amid price volatility and increased supplies, a jet fuel trader said on Thursday.
In four out of the past five years, jet fuel prices have climbed from the Memorial Day holiday to the Fourth of July holiday by an average of nearly 10 cents/gal.
“The school season is ending, it’s the beginning of summer, and the beginning of the travel season in a good economy which would mean more people booking flights,” said the New York Harbour (NYH) trader said.
But the volatility of prices this year, along with unavoidable and unpredictable events, has increased jet fuel inventories and pared gains in prices.
“Prices have been moving like any other distillate with major weather affecting the pipeline, volcanic ash cancelling flights, and more,” the trader said.
Volcanic ash in ?xml:namespace>
For the week ended 28 May, New York Harbour (NYH) jet fuel averaged $2.009/gal with US Gulf (USG) coast jet fuel averaging $1.966/gal.
The next week started with Memorial Day and ended on June 4. Prices in the week for NYH jet fuel averaged $2.071/gal and USG averaged $2.019/gal. And this week, NYH prices fell down to $2.054/gal with USG prices at $2.007/gal.
Furthermore, crude prices are maintaining a stable range near $70/bbl, so a boost from higher futures for light sweet crude is not expected to push jet fuel higher. Traders suggested a bump of 5 cents/gal for jet fuel prices in June was a more realistic expectation.
To discuss issues facing the chemical industry go to ICIS connect
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections