Jet fuel demand to fully recover by 2023 after coronavirus-related collapse, BofA says – The National

Jet fuel demand to fully recover by 2023 after coronavirus-related collapse, BofA says – The National

Jet fuel and middle distillates will lag the recovery in oil prices as air traffic is expected to remain restricted until year-end





























Jet fuel demand is set to rebound only by third quarter of 2021, with a full recovery expected by 2023. Bloomberg











Demand for jet fuel may take years to recover from the impact of the Covid-19 pandemic and is expected to lag behind an oil price increase due to weak air travel demand, especially in the absence of a vaccine.



A measured rebound is expected in the third quarter of next year before a full recovery in demand by 2023, Bank of America's Global Research team said in commodities report on July 23.



The Organisation for Economic Co-operation and Development countries and China are expected to drive most of the growth, but the recovery will probably be L-shaped as quarantine requirements and fresh outbreaks in some cities limit air travel.



An L-shaped recovery is a sluggish rebound that follows a deep recession and is characterised by persistent unemployment and stagnant economic growth.



While refiners have sharply reduced their output, stocks of middle distillates