Saudi to double availability of jet fuel

Saudi Arabia will double its monthly spot aviation fuel supply available for exports starting in May due to lower domestic consumption, reported Reuters.

The world's top oil exporter which typically sells around 550,000 barrels of spot aviation fuel monthly, was likely to boost supply for spot sales to 1.1 million barrels monthly starting in May, traders said.

Saudi Aramco is now looking to offer more spot because domestic demand has dropped off," a source familiar with Saudi's jet fuel exports said.

Jet fuel consumption at airports in the kingdom for 2009, has been revised nearly 6% lower from earlier estimates to around 45,121 barrels per day (bpd), traders said. Demand at airports in Saudi was around 50,000 bpd in 2008.

Demand growth for jet fuel in the Middle East is estimated to be around 2% this year versus 8% in 2008, traders and analysts said.

“Saudi demand for jet fuel will slow considerably this year, primarily due to a slowdown in air travel due to the global economic slowdown," said Raja Kiwan, an analyst with PFC Energy.

“We expect consumption to grow marginally this year, with the busy summer months expected to provide a lift to demand." Aramco showed a spot cargo for mid-May loading, traders said.