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Thanks to Covid, jet fuel is so cheap it's being blended for use by ships

The shift, almost unthinkable just a year ago, reflects the obliteration of demand the aviation industry has suffered in the wake of the Covid-19 pandemic

Photo: Bloomberg
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Jet fuel prices in Singapore plunged from above $70 a barrel in January to close to $20 in early May before recovering to trade around $41. Photo: Bloomberg

Elizabeth Low and Ann Koh | Bloomberg
The fuel that powers passenger planes is normally among the most expensive oil products, but in a sign of the times the coronavirus has turned it into a blending component for typically cheaper shipping fuel.

Straight-run kerosene, usually processed into jet fuel, is now being used to make very low-sulfur fuel oil for the maritime industry amid a plunge in consumption by airlines. Higher than normal amounts of diesel and vacuum gasoil are also finding their way into shipping fuel.

The shift, almost unthinkable just a year ago, reflects the obliteration of demand the aviation industry has suffered in the wake of