Jet fuel demand soars

According to Kayrros analysts, jet fuel demand is growing rapidly in defiance of seasonal trends.

The company noted that the aviation sector is globally recovering, and Asia is getting a rapid recovery with a 36% year-over-year increase in the second week of January.

Kayrros noted that the opening of the borders after 3 years of Covid restrictions caused a surge in air travel. That led to a doubling of jet fuel demand in China in just one week. Growth also seems to be evident in Japan and Australia, while jet fuel demand in South Korea reached a two-year high.

Kayrros says aviation is likely to be a major contributor to global oil demand at more than 100 million barrels per day this year.

Kayrros president Antoine Rostand believes China's opening will influence the whole world. Aviation fuel is generally considered as a niche product, accounting for only 6% of global oil demand last year. However, demand has increased by more than 20%, which is considered as an incredible leap. According to Rostan, this rise is bound to have an impact on the entire global oil market.