Jet fuel to drive biggest jump in oil demand ever: Goldman Sachs

London, (Quantum Commodity Intelligence) - US bank Goldman Sachs is forecasting what it says is the biggest jump in oil demand ever later this year, as vaccinations herald a return to economic growth and energy demand.

As European countries and the US relax travel restrictions, demand for jet fuel is set to rise by 1.5 million bpd, which will drive refinery throughput.

"We expect the biggest jump in oil demand ever, a 5.2 million barrels per day (bpd) rise over the next six months," the bank said, adding it expects Brent to breach $80/b over the same period.

Jet cracks in Asia have risen by around 8% over the past two weeks, according to Quantum data.

The five-day rolling average FOB Singapore Q3 crack versus cash Brent was marked at $4.80/b on Tuesday versus $4.44/b two weeks earlier.

Meanwhile, the five-day rolling average for jet fuel CIF Northwest Europe was $6.19/b, up from $5.88/b two weeks prior.

Q3 jet cracks have also improved versus 10ppm diesel, narrowing from $2/b to $1.34/b on a Singapore basis.

Airlines have made bullish statements recently, forecasting that they expect passenger numbers to return to 80-90% of historical levels over the next few months.