U.S. markets closed
  • S&P 500

    +16.20 (+0.47%)
  • Dow 30

    +113.37 (+0.40%)
  • Nasdaq

    +37.61 (+0.33%)
  • Russell 2000

    +4.08 (+0.25%)
  • Crude Oil

    +0.05 (+0.12%)
  • Gold

    -1.00 (-0.05%)
  • Silver

    -0.06 (-0.22%)

    +0.0001 (+0.01%)
  • 10-Yr Bond

    +0.0360 (+4.73%)

    +0.0006 (+0.05%)

    +0.0130 (+0.01%)

    +844.11 (+7.63%)
  • CMC Crypto 200

    +0.62 (+0.26%)
  • FTSE 100

    +4.57 (+0.08%)
  • Nikkei 225

    -104.09 (-0.44%)

4 Stocks in Focus on Rebounding U.S. Jet Fuel Consumption

Nilanjan Choudhury
·3 mins read

U.S. jet fuel consumption is on course to rebound more quickly from the coronavirus pandemic than many other key aviation markets, according to the EIA. The federal agency, after analyzing flight data provided by industry analytics firm Cirium, estimated that demand for jet fuel by commercial passenger flights in the United States as of Aug 16 was around 612,000 barrels per day — 43% of what had been used a year ago.

The report revealed that from mid-April through May, the consumption languished at approximately 20% of the 2019 usage. One should keep in mind that commercial passenger aircraft is responsible for more than 70% of America’s total jet fuel consumption.

As far as other regions of the world are concerned, jet fuel demand in Europe in mid-August was 36% of the same period in 2019, while for Middle East and North Africa, the rest of Africa, Asia (excluding China) and the rest of Americas the recovery rate was 30%, 31%, 28% and 24%, respectively. China saw its demand rebound to 60% of last year’s but this higher recovery could be attributed to the early onset of COVID-19 in the country and its strict government controls.

On the other hand, the relative strength of jet fuel consumption in the United States reflects its not-so-strict domestic travel restrictions, short-haul flying involved and non-discretionary travel constituting a large chunk of such journey, per the EIA. As it is, domestic are travel in most countries have felt lesser impact from the restrictions to slow the spread of COVID-19 compared to international operations.

Want to Make the Most of Improving U.S. Jet Fuel Demand?

With domestic air travel in the United States is slowly looking up — and consequently, jet fuel demand rebounding — it might be a good idea to focus on companies associated with this oil product:   

World Fuel Services Corporation INT: World Fuel Services is engaged in marketing and selling marine, aviation, and land fuel products, plus associated services. The company currently carries a Zacks Rank #2 (Buy).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CVR Energy, Inc. CVI: CVR Energy is engaged in the business of petroleum refining and marketing. The Zacks Rank #3 (Hold) company’s output include gasoline, distillate — mainly consisting of diesel fuel, kerosene and jet fuel — and other specialty products.

HollyFrontier Corporation HFC: HollyFrontier is one of the largest independent refiners and marketers of petroleum products in the United States. The #3 Ranked company manufactures and sells gasoline, diesel fuel, jet fuel and other specialty products.

Par Pacific Holdings, Inc. PARR: It is a diversified energy company with a portfolio of refining, infrastructure, retail as well as exploration and production assets. The Zacks Rank #3 company’s refining segment churns out diesel, gasoline, jet fuel, marine fuel, low sulfur fuel oil, and other associated products.

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CVR Energy Inc. (CVI) : Free Stock Analysis Report
World Fuel Services Corporation (INT) : Free Stock Analysis Report
HollyFrontier Corporation (HFC) : Free Stock Analysis Report
Par Pacific Holdings, Inc. (PARR) : Free Stock Analysis Report
To read this article on Zacks.com click here.