Increasing Midwest and Gulf Coast refinery production contributes to high jet fuel inventories (7/28/2021)

By January 1, 1970Market

Increasing U.S. air travel since the beginning of 2021 has contributed to increases in demand for kerosene-type jet fuel in the United States. However, the pace of the increases in jet fuel product supplied (a measure of demand) has, so far, been slower than product supplied increases in other refined petroleum products, particularly motor gasoline and distillate fuel oil. U.S. refineries have increased crude oil inputs (refinery runs) to increase gasoline and distillate fuel oil production in order to meet increasing demand. As a result, jet fuel production has also increased. However, relatively less jet fuel is being withdrawn from inventories, and U.S. jet fuel inventories have increased since May 2021. While inventory levels in the Rocky Mountains (PADD 4) and the West Coast (PADD 5) have been decreasing and are near their previous five-year (2016–2020) averages, inventory levels in the East Coast (PADD 1), Midwest (PADD 2), and Gulf Coast (PADD 3) have been increasing and are near or above their five-year highs. …Increasing U.S. air travel since the beginning of 2021 has contributed to increases in demand for kerosene-type jet fuel in the United States. However, the pace of the increases in jet fuel product supplied (a measure of demand) has, so far, been slower than product supplied increases in other refined petroleum products, particularly motor gasoline and distillate fuel oil. U.S. refineries have increased crude oil inputs (refinery runs) to increase gasoline and distillate fuel oil production in order to meet increasing demand. As a result, jet fuel production has also increased. However, relatively less jet fuel is being withdrawn from inventories, and U.S. jet fuel inventories have increased since May 2021. While inventory levels in the Rocky Mountains (PADD 4) and the West Coast (PADD 5) have been decreasing and are near their previous five-year (2016–2020) averages, inventory levels in the East Coast (PADD 1), Midwest (PADD 2), and Gulf Coast (PADD 3) have been increasing and are near or above their five-year highs. …EIA: This Week in Petroleum

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