Supply and Demand

Supply & Demand Analysts look at the market for jet-A, avgas BY John Boyce, Contributing Editor June 1999 Many oil industry veterans will tell you that oil is one of the few commodities left whose price is as close to pure...

"In the rest of the U.S., I think there could be a little more increase but primarily it's going to be determined by what happens over the next couple of months in crude. If the production of crude is actually not reduced, there'll be plenty of volume out there, and the bidding is going to start pushing prices back down, and that'll impact the refined product side."

The reverse will be true, he concludes, if production of crude is, indeed, cut.

If jet is in short supply for the private sector, those retailers who get their fuel from spot buyers could see a considerable increase in price, according to most analysts. Those buyers with regular contractual agreements with a supplier will get first option on available product. The spot buyer who buys at the best price day to day might experience some difficulty getting product, and then at a premium price.

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