Northeast Asia jet/kerosene demand plunges to seasonal lows
Jet/Kerosene imports in Northeast Asia declined to a one-year low of 56kbd and fell under the seasonal range due to lower kerosene demand for heating purposes during the summer months. The reduction in jet/kerosene consumption, primarily seen in Japan, resulted in lower intra-Northeast-Asia jet/kerosene flows, freeing up supplies for other regions.
As new refineries started up in the Middle East, Northeast Asian refiners struggle to gain jet fuel market share in Northwest Europe, given the proximity and other advantages of Middle Eastern refiners. Northeast Asian jet fuel exports to Northwest Europe have fallen for the third consecutive year in YTD 2025, with diminishing arbitrage opportunities in a highly competitive market.
Concurrently, Northeast Asia jet fuel exports to the Americas West Coast increased in May as jet fuel prices between South Korea and the US West Coast widened from mid-March to mid-April, improving transpacific jet fuel arbitrage economics. Jet cargoes booked during the open arbitrage period will show up only in May and June; hence, the uptick in exports to the Americas West Coast only started in May.
