Launceston, Australia: Jet fuel prices in Asia have surged sharply, signaling growing economic pressure on global energy consumers as the Middle East conflict disrupts critical oil supply routes. Analysts say the sudden spike reflects fears that prolonged instability could severely tighten fuel availability across international markets.
In Singapore, Asia’s main fuel trading hub, jet fuel prices jumped 72 percent to a record $225.44 per barrel on Wednesday. The surge followed concerns over disruptions to nearly 20 million barrels per day of crude oil and refined products moving through the Strait of Hormuz.
Moreover, the spot price of jet kerosene has climbed 140 percent since February 27, just before the United States and Israel launched an aerial bombing campaign against Iran. Despite efforts by US President Donald Trump to reassure markets that tankers will continue to transit the narrow waterway, traders remain skeptical about the stability of shipping routes.
Asian Refiners Show Signs of Market Stress
Jet fuel remains particularly vulnerable to supply disruptions because inventories are typically lower than other petroleum products. In addition, the fuel requires specialized storage facilities, making rapid stock adjustments difficult.
Consequently, refining margins for jet kerosene produced from Dubai crude have exceeded $100 per barrel. Such unusually high margins suggest traders expect severe shortages in the coming weeks.
At the same time, several Asian refiners are already adjusting operations to manage supply risks. Reports indicate that some facilities have reduced operating rates to conserve crude supplies, while others have accelerated scheduled maintenance shutdowns.
Regional Export Restrictions Tighten Fuel Supply
Meanwhile, India’s Mangalore Refinery and Petrochemicals has reportedly suspended fuel exports from its 300,000-barrel-per-day refinery in Karnataka. The state-owned facility typically exports about 40 percent of its refined fuel output.
Additionally, Chinese authorities have reportedly urged companies to pause new export contracts for refined fuel and reconsider existing shipments. If implemented widely, these restrictions could significantly tighten regional fuel markets.
Analysts also note that much of the disrupted oil supply consists of medium-sour crude, which produces higher volumes of jet fuel and diesel during refining.
