U.S. jet fuel prices hit by demand fears on coronavirus

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U.S. jet fuel prices hit by demand fears on coronavirus
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Falling demand for jet fuel worldwide because of the deadly coronavirus has hit ...

NEW YORK - Falling demand for jet fuel worldwide because of the deadly coronavirus has hit U.S. prices for the product, which dropped to its lowest seasonally in five years, market participants said.

In January the average amount of jet fuel on the water, in transit, was 11% lower than the same time last year, said Matt Smith, director of commodity research at ClipperData. That decline is likely to accelerate in February as more travel restrictions are put into place to quell the outbreak, he said.

On the U.S. West Coast, prices have plummeted as cheaper supplies are being sent into the region from Asian markets. Jet fuel for delivery into Los Angeles is down 25% in the last month, to $1.5997 on Monday from $2.1266 a gallon, traders said.

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