Australia's largest stock trading and investment forum Australia's #1 stock forum

KAR

3.06%

$1.74 karoon energy ltd

Jet planes are burning fuel like it’s 2019 as the world resumes flying after Covid-19, page-3

First 3 Last

Share
Profile

Follow
stevo

12,821 Posts.

582

10/06/24

18:06

Post #: 74246746
Share

Originally posted by Edson: ↑

IMO Oil demand is still underestimated by the market.

https://www.bloomberg.com/news/articles/2024-06-09/the-world-s-flying-again-and-jets-are-burning-fuel-like-it-s-2019?embedded-checkout=true

In the third quarter, 10.5 million flights are scheduled to criss-cross the skies, according to industry data compiled by Bloomberg NEF

Coming any minute now to a sky near you: a plane packed with people going on holiday, leaving wispy white contrails in its wake and memories of Covid-19 that seem like a bad dream.

The world is flying again. In the third quarter, 10.5 million flights are scheduled to criss-cross the skies, according to industry data compiled by BloombergNEF. The International Air Transport Association (IATA) is anticipating record passenger numbers this year, and planes that will be about as full as they were before the virus using record amounts of fuel.

For environmentalists, the trend will be met with dismay as it drives an accompanying surge in carbon emissions and another watermark in a resurgence of tourism. For the oil industry, the revival is a welcome boost, though. This is a world in which Opec and its allies have been forced – since the early days of the virus – to keep the supply of petroleum artificially constrained. Jet fuel consumption suffered a far bigger and more enduring hit than any other mainstream petroleum product.

“As a human race, we are starting to travel more again,” said Eugene Lindell, head of refined products at industry consultant FGE. We are “shaking off the pandemic years.”

It is international travel that is set to see the biggest surge. That will grow by 9.7 per cent this year with huge increases in Asia, Europe and North America. International flights from Asia should climb by 23 per cent but there are substantial gains almost everywhere.

In Singapore, another waypoint between Asia and the West, passenger numbers at Changi Airport in the first three months of 2024 – at 16.5 million people – have exceeded 2019 levels. Pent up demand saw China as the airport’s top destination for the quarter, after the introduction of a 30-day visa-exemption arrangement between the two nations.

It’s translating into record passenger numbers for key long-haul hubs in Asia and the Middle East. Dubai International, for example, recorded its busiest ever quarter for passenger numbers in the first three months of the year with 23 million visitors. The airport’s chief executive expects 91 million through 2024, a record.

Nevertheless, it’s shorter-distance that is really been driving the rebound, according to Simon Warren, an analyst at Vitol Group, the world’s biggest independent oil trader. He anticipates jet fuel demand will advance by 650,000 barrels a day this year.

“Global jet demand is now back at pre-Covid levels, for the first time since 2020,” he said. “The recovery has been predominantly led by the short haul sector. Jet is a primary driver of overall oil demand growth.”

Oil traders evaluating jet prices often look at how much it costs compared to diesel, a relatively similar fuel-type that has a much larger share of the global petroleum market. In Europe, the measure shows jet fuel has strengthened since March, with a similar picture in Asia and the US, according to fair value data compiled by Bloomberg.“

We see nice increases based on booking data for jet fuel demands globally, especially in Asia, in places like China,” said Daan Struyven, head of oil research at Goldman Sachs Inc. “Last year, the number of international flights for instance was still very, very low, and we’re going to continue to see positive year-over-year demand growth because of a recovery there.”

IATA is forecasting fuel consumption of 99 billion gallons this year by the global airline industry, a 3 per cent jump from 2019.However, increased efficiency is holding back fuel consumption.

Both the International Energy Agency and FGE do not expect demand for jet fuel – including kerosene that goes into heating – to surpass 2019’s level this year.“

Air travel is basically back to pre pandemic levels,” said Jeffrey Barron, an analyst at the US Energy Information Administration. However, “they’ve also tried to increase their efficiency in terms of fitting more people on aeroplanes, such that they are consuming slightly less jet fuel than they were pre-pandemic.”

Expand

Always believed this would be the case..and not only with jet fuel. Renewables are crap unreliable energy except in very specific circumstances.

People are always so slow to recognise the economic and practical reality and lets face it, humans have never, ever taken a backwards step out of concern for the planet, when their personal convenience, amenity and various security needs were involved .. .

KAR Price at posting: $1.70 Sentiment: Buy Disclosure: Held
3 Upvote

0 Great analysis

Reply

Top Stories

MM1

Geochemical work at Newington picks up gold and copper anomalies for Midas

TRP

Tissue Repairs soars nearly 32% on TGA approval for wound healing gel

PEC

Perpetual sniffs TREOs beyond 4000ppm at Raptor play in Brazil

Capital raisings wrap: Brainchip, Ovanti, Lake and VHM

BGL

Bellevue aims for 45% production increase by FY 2028, announces $150M placement

There are more pages in this discussion • 3 more messages in this thread...

First 3 Last

Add KAR (ASX) to my watchlist

(20min delay)
Last $1.74		Change -0.055(3.06%)		Mkt cap ! $1.394B

Open	High	Low	Value	Volume
$1.88	$1.90	$1.74	$19.55M	10.90M

Buyers (Bids)

No.	Vol.	Price($)
3	52784	$1.74

Sellers (Offers)

Price($)	Vol.	No.
$1.75	5000	1

View Market Depth

No.	Vol.	Price($)
3	52784	1.740
2	3451	1.735
5	120629	1.730
2	46094	1.725
4	51294	1.720

Price($)	Vol.	No.
1.745	5000	1
1.750	40759	3
1.755	5782	1
1.760	5782	1
1.765	92051	3

Last trade - 16.10pm 25/07/2024 (20 minute delay)

KAR (ASX) Chart

Jet planes are burning fuel like it’s 2019 as the world resumes flying after Covid-19, page-3

Geochemical work at Newington picks up gold and copper anomalies for Midas

Tissue Repairs soars nearly 32% on TGA approval for wound healing gel

Perpetual sniffs TREOs beyond 4000ppm at Raptor play in Brazil

Capital raisings wrap: Brainchip, Ovanti, Lake and VHM

Bellevue aims for 45% production increase by FY 2028, announces $150M placement

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Jet planes are burning fuel like it’s 2019 as the world resumes flying after Covid-19, page-3

Top Stories

Geochemical work at Newington picks up gold and copper anomalies for Midas

Tissue Repairs soars nearly 32% on TGA approval for wound healing gel

Perpetual sniffs TREOs beyond 4000ppm at Raptor play in Brazil

Capital raisings wrap: Brainchip, Ovanti, Lake and VHM

Bellevue aims for 45% production increase by FY 2028, announces $150M placement

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News