The global jet kerosene market is growing as the volume of air travel continues to increase, particularly in Asia.
Global jet-kerosene prices rose in 2011 and are expected to remain high in 2012, with values supported by gains in benchmark crude oil values.
High jet fuel prices have placed pressure on airline margins and led to a hike in air fares.
Most of the large airlines and jet fuel consumers hedge the price of the product to limit fluctuations in costs. Global air passenger demand was strong in 2011, but airfreight was hit by the economic slowdown.
There remains a certain degree of uncertainty regarding the outlook for the airline sector in 2012, amid downgrades in growth forecasts for the global economy.
Asia is expected to remain the engine of growth in the airline industry in 2012, with strong growth in domestic markets in China and India.
Europe will remain an importer of jet fuel, dependent on imports from the Gulf and Asia.
The US market for jet fuel has become increasingly volatile over the years, creating uncertainty for the airline industry.