US Jet Fuel Production Boosted by Biofuel Mandates and Middle East Disruptions
US jet fuel output has reached record highs due to geopolitical disruptions and favorable biofuel blending economics. As refiners respond to the Renewable Fuel Standard (RFS) mandates, jet fuel exports surged 62% year-on-year in July, driving further investment in production capacity.
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US jet fuel production has seen significant growth, with an output of 2.068 million barrels per day (b/d) as of July 31, marking a 4.3% increase from the previous year. This rise is partly due to the impact of the US-Iran war disrupting supply flows, alongside heightened costs from the Renewable Fuel Standard (RFS) for road fuels, which has driven renewable identification number (RIN) prices to record levels.
In July, US jet fuel exports averaged 308,000 b/d, a 62% increase compared to last year, with Gulf Coast refineries contributing 90% of these exports. Refiners, capitalizing on strong jet fuel margins, have announced expansions, including HF Sinclair's switch capabilities and Phillips 66’s planned capacity increases. The US is positioned to benefit from the growing global demand for jet fuel amid ongoing supply chain disruptions.
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