A Budding Recovery in West Coast Flight Traffic Is Good for Oil
- California markets indicate strength during pandemic slump
- Alaska cargo provides bright spot amid bleak demand for travel
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A rebound in both commercial and cargo flights on the U.S. West Coast is a good sign for the global oil market that is still facing the lingering consequences of this year’s collapse in air travel.
Physical barrels of jet fuel in Los Angeles are trading at the smallest discount to Nymex futures since July as the market for the fuel picks up. At the same time, the cargo hub in Alaska is doing so well it saw record jet fuel imports from South Korea in the third quarter, according to Vortexa Ltd., a tanker analytics firm.