Jet fuel: the IMO 2020 effect — December 2018

The two-year upward trend in crude and Jet A prices was reversed in November, with crude slipping to around $60/bbl and Jet A to $75.

The outlook for crude prices is generally promising, or at least a return to prices over $100/bbl looks unlikely (with the usual caveat about geopolitical events). According to an analysis by Bernstein, presented at a recent research conference, global capacity/demand patterns and inventory levels indicate a “price deck” of $70/bbl for 2019-2023, with the average prices likely to fluctuate in the $70s.