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

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

Jet fuel specifically and middle distillates more broadly will lag the recovery in oil prices as air traffic likely to remain restricted until year-end at least





























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











Demand for jet fuel may take years to recover from the Covid-19 pandemic and will lag behind an uptick in oil prices as air travel demand remains weak, especially in the absence of a vaccine, according to Bank of America (BofA).



A measured rebound is expected in the third quarter of 2021 before a full recovery in demand for the aviation fuel by 2023, the BofA Global Research said in a July 23 commodities report. The Organisation for Economic Co-operation and Development (OECD) countries and China will drive most of that uptick.



The recovery in jet fuel demand will be L-shaped as quarantine requirements and fresh outbreaks of Covid-19 in some cities curb air travel. An L-shaped recovery is a sluggish rebound that follows a deep recession with persistent unemployment and stagnant economic growth.



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