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Shell’s (NYSE:SHEL) head of aviation said Tuesday the company expects global demand for aviation fuel will fully recover to pre-COVID levels of 300M metric tons/year in the next year or two.
U.S. demand already has returned to 2019 levels while Europe’s consumption has recovered to more than 80% and is on track for full recovery in the next year, Shell Aviation President Jan Toschka told Reuters at the Asia Pacific Petroleum Energy Conference.
Asia “has been a bit more of a bumpy road with markets opening up and closing down,” Toschka said, and “it might take another year before we see the full potential of the market.”
Jet fuel supplies are tightening in Europe with sanctions on Russian oil products kicking in on February 5, causing the region to import more fuel from the U.S., China, India and the Middle East; “shipping and rail and all kinds of distribution are under more stress now with this new kind of routing” of trade, Toschka said.
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“Contrary to popular opinion, it looks like a good time to sell Shell, despite its attractive valuation,” Manika Premsingh writes in a bearish analysis posted recently on Seeking Alpha.
