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Chinese Jet Demand and EU Russia Ban Drive Prices Higher

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China's dramatic Covid-19 recovery and soaring jet fuel demand is driving oil prices higher, alongside the potential for massive diesel supply disruptions when the EU ban on Russian fuel imports and G7 fuel price caps both come into effect next week. International benchmark Brent finished the week $1.31 per barrel higher at $87.47/bbl, while US domestic price-pin WTI gained 68¢/bbl to close at $81.01/bbl. Global jet fuel demand was already up to last summer’s peak by the middle of this month thanks to China’s sudden reopening. Global jet demand was up 16% year on year at 6 million b/d in mid-January, according to latest analysis by Kayrros of aircraft ADS-B signals. That is still 1 million b/d or 14% below where it was at the start of 2020 before Covid-19 took hold. But the gap is steadily narrowing.

Jet Fuel, Crude Oil, Oil Spot Markets
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