Industrialized Cyclist Notepad


Delta thinks it can manipulate the price of jet fuel by running a refinery

Yeah, I don’t think so.

“We’re probably the largest private purchaser of jet fuel in the United States but we don’t get to participate in the pricing function,” Anderson told reporters after the Delta’s annual meeting in New York. “It’s our intention to begin to participate in the pricing function and put a lot of downward pressure on the cost of refining a barrel of jet fuel.”

The Trainer refinery will produce 52,000 barrels a day of jet fuel, according to slides published in an April 30 8-K filing by the company. Delta will exchange all other products with BP Plc (BP/) and Phillips 66 (PSX) for an additional 120,000 barrels a day of jet fuel in other locations around the country. The airline consumes about 210,000 barrels a day in the U.S.

via Delta CEO Says Airline to Pressure Prices as Jet Fuel Seller – Bloomberg.

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