In December 2024, Jet Kerosene prices displayed divergent trends across global markets, influenced by regional demand and supply factors. In the Indian market, prices surged significantly, driven by heightened consumption of Jet Kerosene from the key aviation sector. The rising demand, put upward pressure on the price of Jet Kerosene, further exacerbated by limited domestic production. Conversely, in Western markets, a slight decline in Jet Kerosene prices was observed, with North America facing the most considerable impact.

Indian Jet Kerosene prices saw a notable rise during December 2024, driven by a combination of increased consumption within the domestic aviation sector and heightened export demand. The final month of the year typically witnesses a significant surge in air travel due to the holiday season, which played a pivotal role in this price increase. India’s Aviation Turbine Kerosene (ATF) consumption reached a historic high of 778,000 tonnes in December, marking a 4% month-on-month (M-o-M) increase and an over 8% rise year-on-year (Y-o-Y). This surge in demand was primarily driven by both international and domestic travel, with many travellers taking advantage of the year-end festivities to embark on longer journeys. This increased consumption during the holiday season was further compounded by tight supply conditions in the global kerosene market, driving prices upward. Additionally, the rise in international demand for Jet Kerosene contributed to higher export activity from India, further straining domestic supply. The confluence of factors—rising domestic consumption, increased export demands, and supply constraints—led to sustained upward pressure on Jet Kerosene prices in India.

Moreover, Asia's Jet Kerosene imports from India reached multi-year highs in November 2024, with expectations of a continued increase in imports in December as well. This trend underscores India’s growing role as a key supplier of Jet Kerosene in the region. As India's aviation industry continues its post-pandemic recovery and expansion, demand for Jet Kerosene is anticipated to remain strong, suggesting that upward price trends could persist into the early months of 2025. This continued robust demand, coupled with limited global supply, is likely to further reinforce the rising price trajectory in the Indian market.

In contrast, North American Jet Kerosene prices experienced a slight decline during the same period. The price of crude oil, a key raw material for Jet Kerosene, exerted limited upward pressure on Jet Kerosene prices, with fluctuations in crude oil prices remaining relatively moderate. Additionally, supply conditions in North America remained ample during this period, as traders strategically stockpiled inventories based on the expectation of subdued demand from the aviation sector. This expectation was driven by forecasts of modest consumption during the Christmas and New Year festivities, a time typically characterized by seasonal declines in air travel.

According to ChemAnalyst, it is anticipated that Jet Kerosene prices in North America may experience a decline in the forthcoming months, primarily due to the fading of seasonal demand. As the holiday travel period ends and the aviation sector enters its off-peak season, a reduction in kerosene consumption is expected.