According to Bloomberg report only 20% (about 50 million barrels) of land storage for jet fuel is available. This is a result of grounded planes in many countries because of coronavirus pandemic. A few main oil production countries created demand and supply disbalance.

Demand and supply of jet fuel used to be balanced until flights cancellations destroyed the demand. On average per day jey fuel demand was 7 million barrels, now consumption could have dropped by 50%. If oil production countries will not reduce output then land-based tanks will be full till end of next month (it takes several weeks for fuel reach storage units). But some airlines revealed plans to restart business till end of this month.

Demand for petrol and diesel fuel is low because many cities under lockdown and people just don’t drive as much as they used to do. Low cost of crude oil and oversupply could lead to future price fall and create oversupply on global market.

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