US jet fuel production soars to all-time high amid global energy race triggered by West Asia crisis

The United States has sharply increased jet fuel production after global aviation fuel markets faced major supply pressure following the closure of the Strait of Hormuz on February 28, with rising crude oil costs and import disruptions driving prices higher across Europe and Asia.

The surge in US output comes as countries that previously depended heavily on Persian Gulf supplies look for alternative sources. According to the US Energy Information Administration, a significant share of the increased American jet fuel production is now moving towards international markets, while domestic inventories remain above historical levels.

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The report said, “Despite increased export demand, jet fuel inventories in the United States have remained above average.”

The disruption at the strategic maritime route triggered immediate changes in US refining activity, with producers increasing jet fuel output to take advantage of higher margins.

The US Energy Information Administration reported:

• Record production levels: The four-week average US jet fuel production reached 1.7 million barrels per day (b/d) after the supply shock.

• Historic output milestone: “In the week ending May 1, the four-week average estimate of U.S. jet fuel production surpassed 2.0 million b/d for the first time on record.”

• Higher inventories: US jet fuel stocks stood at 45 million barrels as of May 29, around 7% above the 2021-2025 average.

Refiners chase higher profits

The jump in production was supported by stronger refining economics as operators adjusted facilities to maximise aviation fuel output.

The US Gulf Coast Jet Fuel Spot price averaged USD 3.91 per gallon from March to May, nearly double the level seen at the start of the year.

The report noted that jet fuel prices moved above gasoline and diesel prices during the period, creating strong incentives for refiners.

The jet fuel crack spread, which indicates refinery profitability from converting crude into aviation fuel, averaged USD 1.25 per gallon between March and May, compared with USD 0.42 per gallon earlier in the year.

Global supply flows shift

The price surge was not limited to the US market. Trading hubs including Singapore and the Amsterdam-Rotterdam-Antwerp region also saw prices rise sharply, with wider profit margins influencing global supply movements.

“Jet fuel prices in Europe and Asia traded at significant premiums to the US Gulf Coast in March and April, attracting sources to replace imports from the Middle East,” the report stated.

As demand for alternative supplies increased, US jet fuel exports reached record levels in April and May, according to trade data from US Customs and Border Protection.

The rise in exports helped ease pressure on international markets, with European and Asian prices later cooling from their April peaks as fears of prolonged shortages declined.