Jet Fuel Demand Battered as Trump Ban Deepens Market Gloom
- Traders say unwanted fuel supplies will have to be stored
- Refineries doing everything to avoid making the product
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Jet fuel demand, already smashed by the novel coronavirus, just got dealt another blow as U.S. President Donald Trump announced that travel from Europe will be severely restricted to combat the spread of the disease.
The price of the petroleum product slumped as much as 10% on Thursday in Europe. People involved in the market said they expect an emerging glut to force excess supplies to go into storage while refineries do everything possible to produce other fuels like diesel instead. A weak market in Europe has snapped shut deliveries from Asia, potentially backing up inventories there, according to traders.