Jet fuel’s lustre tarnished by virus with demand story in doubt

Once the demand star among oil products, the coronavirus has pushed jet fuel to the bottom of the barrel in the near term at least. As travel plans are put on hold and flights are cut, profits from producing the fuel are plummeting. Margins for the fuel at Singapore refineries have tumbled by 39% since Jan 23 when markets first began taking notice of the virus. They lurched 6% lower Monday on signs the outbreak is going global. As flight cancellations mount, Asian traders and refiners have been sending jet fuel across the Pacific to California and also to Europe. Shipments of aviation fuel from Asia to the Americas are poised to reach a 5-month high in February, contributing to a global glut. IATA forecast last week that global passenger demand would contract by 0.6% this year. <br/>