Oil demand ramps up air miles

Jet fuel will play crucial role in oil consumption growth even with efficiency gains and environmental curbs, with geopolitical risks highlighting importance of plentiful stocks

When Israel began bombing Iran on 13 June, Brent crude prices rose by 6.10%, while jet fuel prices in Northwest Europe surged by 6.42%—highlighting Europe’s reliance on Middle Eastern aviation fuel supplies. Both OPEC and the IEA emphasised jet fuel’s role in oil demand growth in their latest oil market reports. The IEA mentioned that demand may not return to pre-pandemic levels before 2027 due to the shift toward sustainable aviation fuel (SAF). OPEC, on the other hand, cited jet fuel and gasoline as the primary drivers of oil demand growth in both OECD and non-OECD countries this year. 6.42% – Rise in jet prices in Northwest Europe While global jet fuel demand is recovering, Europe