Historical record for aviation fuel prices. Prices shot up by $300 in one day

Jet fuel and diesel prices in northwestern Europe topped USD 1,900/t and USD 1,600/t respectively on Thursday, reaching new all-time highs. Market participants expect further escalation in the Middle East over the Easter long weekend.

Argus, a global data provider on commodity and energy markets, on Thursday priced CIF jet fuel for northwestern Europe at USD 1,903.50/t, which means an increase of almost USD 300/t during the day. It is also over USD 100/t more than the previous historical record on March 20, which was USD 1,794/t.

The FOB ARA diesel price was set at USD 1,604/t, more than USD 200/t higher on the day and almost USD 150/t higher than the previous record on March 20.

Middle distillate prices were supported by an increase in the price of the base Ice diesel, which also reached a record high of USD 1,569.75/t on Thursday, up 15%. during the day.

Due to import parity, the price on the ARA exchange is the main factor shaping wholesale fuel prices in Poland.

US President Donald Trump threatened on Wednesday evening with a “very strong strike [w Iran] over the next two to three weeks,” which supported futures prices, investors said.

Thousands of US troops are arriving in the Middle East, raising fears of a land invasion.

Market participants may have already taken long positions before the Easter weekend, not wanting to be surprised by a further escalation before the next session on April 7.

Participants again highlighted extreme volatility in middle distillate markets, which likely contributed to sharp price increases on Thursday.

Jet fuel and diesel prices have more than doubled since the start of the war as supply disruptions from the Persian Gulf in the Middle East region have threatened about 50% of imports. aviation fuel to Europe and 15-20 percent diesel oil imports.

“The ongoing conflict is creating unprecedented disruptions in global energy supply chains, and its spillover into the Persian Gulf countries has forced some of them to suspend hydrocarbon production, which has an immediate and potentially long-lasting impact on international markets. Even assuming a quick cessation of fighting, the return to normal production will be slow,” said Fabio Panetta, a member of the ECB's Governing Council on Thursday. (PAP Business)

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