U.S. jet fuel production surpassed 2.0 million barrels per day on a four-week average basis for the first time on record in the week ending May 1, according to the U.S. Energy Information Administration. The figure was 1.7 million barrels per day on Feb. 28, when the Strait of Hormuz closed.

EIA said the increase reflects above-average refinery runs and strategic shifts by U.S. refiners to raise jet fuel yields. Supply concerns in Europe and Asia, which previously imported much of their jet fuel from the Persian Gulf, pushed prices higher.

From March through May, U.S. Gulf Coast jet fuel spot prices averaged $3.91 per gallon, about double the level at the start of the year and higher than regional spot prices for gasoline and diesel. The Gulf Coast jet fuel crack spread, an indicator of refining profitability, averaged $1.25 per gallon in the period, up from $0.42 per gallon at the start of the year.

Jet fuel prices in Europe and Asia traded at premiums to the Gulf Coast in March and April. Weekly estimates based on U.S. Customs and Border Protection trade data show U.S. jet fuel exports reached record highs in April and May. Prices in all three regions have since fallen below their April peaks as concerns of an imminent jet fuel shortage eased.

U.S. jet fuel inventories totaled 45 million barrels as of May 29, 7% above the 2021 to 2025 average. West Coast inventories, a region that relies heavily on imports, also remain above average. EIA said that if the recent decline in imports to the West Coast continues, the region may need to draw more from inventories.

Source: U.S. Energy Information Administration - https://www.eia.gov/todayinenergy/detail.php?id=67764