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US Jet Fuel Production Nears Record Highs Amid Middle East Conflict

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Weekly US jet fuel output has reached near-record levels due to heightened global demand amid the supply crunch triggered by the Middle East conflict.

US Energy Information Administration weekly data show that US refiner and blender net production of jet fuel has remained above the 2 million barrels per day mark since April 17 this year.

Production levels in the past few weeks are close to the weekly record high of 2.1 mmb/d set on July 5, 2024, the highest level since the EIA began releasing jet fuel production data in 1982.

Jet fuel production has surged by 288,000 b/d since the US-Israel campaign against Iran began on Feb. 28, according to EIA data.

Weekly data for the week ending Feb. 27, a day before the conflict began, pegged jet fuel output at 1.7 mmb/d, according to the data.

Recent data for jet fuel production was just over 2 mmb/d for the week ending May 15, EIA data showed.

Reflecting surging global demand, US jet fuel export data touched an all-time record in the week ended May 8, when export volumes hit 455,000 b/d, EIA data showed.

The previous record for jet fuel exports was in the week ending April 3, when volumes hit 442,000 b/d.

This indicates that US jet fuel export volumes have hit the two highest levels on record since the outbreak of the Middle East conflict. Prior to the conflict, the record stood at 439,000 b/d, set in September 2022.

The prolonged Middle East conflict has constrained crude and oil product movement via the Strait of Hormuz, exerting upward pressure on prices.

US refiners expect high margins to continue at least until the end of 2026, according to an Argus report.

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