SINGAPORE, March 8 (Reuters) – Global jet fuel prices have surged to near 14-year highs in line with crude oil’s surge on supply shortfall worries, slamming air carriers and travellers with steep cost increases just as air travel was starting to recover from COVID-19 restrictions.
Oil prices have soared to their highest since 2008 as supplies lag recovering global demand and as the U.S. weighs banning Russian oil imports following Moscow’s invasion of Ukraine.
Global crude oil benchmark Brent has jumped 26% to more than $120 a barrel since Russian forces invaded Ukraine on Feb. 24, triggering a global scramble by importers to secure alternatives to Russian crudes that are at risk of sanctions.
The race for crude has jacked up prices for refined products that will be affected if crude supplies tighten, with Singapore jet fuel prices outperforming Brent since Feb. 24 to gain nearly 35% and hit $150 a barrel for the first time since July 2008.
Jet fuel prices in Europe and the United States have posted similar gains, leaving global carriers who have already been hammered by COVID-19 over the last two years having to pass on higher costs via fuel surcharges and increased fares.Read more