Europe faces the risk of a tight jet fuel supply, with stockpiles less than 30 days' worth of demand amid escalating conflict with Iran, despite the region accelerating imports from the United States, Asia, and new sources.
July 13, 2569 at 12.21:XNUMX a.m., Reuters reported that Europe also faces a high risk of jet fuel shortages if the situation in the Middle East escalates. Despite accelerating oil imports from the US and Asia, increasing refinery production capacity, and utilizing reserves to meet airline demand,
The most vulnerable countries These include the United Kingdom, France, and Germany, as Europe has shut down many oil refineries in recent decades, making it more reliant on imports of jet fuel from the Middle East via the Strait of Hormuz than any other region.
The Strait of Hormuz, a crucial shipping route for approximately 20% of the world's maritime energy trade in oil and liquefied natural gas (LNG), is once again facing uncertainty. Following the retaliatory attacks between the United States, Israel, and Iran, the risk of supply disruptions has increased.
Data from the consulting firm Energy Aspects. expected Europe will face a jet fuel supply deficit of nearly 600,000 barrels per day in the third quarter, while the United States will have a surplus of 116,000 barrels per day and the Asia-Pacific region will have a surplus of 425,000 barrels per day.
Furthermore, Europe had only 38 million barrels of jet fuel reserves as of early June, compared to 99 million barrels in the United States, which is enough to meet less than 30 days of demand and is the lowest level compared to the world's major jet fuel markets.
even Data from the International Energy Agency (IEA). specify that European jet fuel inventories at the end of May increased by 10% year-on-year, and refinery capacity rose by 30%, but this was still only enough to meet demand for about one month.
Analysts from Rystad Energy. expected The European jet fuel market will remain tight at least until August.
side Dan Jorgensen, the European Union's (EU) Commissioner for Energy. admit that The situation could worsen towards the end of the summer tourist season, and if necessary, the European Commission is prepared to coordinate the release of oil from member states' reserves.
Before the war erupted in late February, Europe relied on imports of nearly 50% of its total jet fuel from the Middle East. However, Europe has diversified its sources of imports to other countries, particularly the United States, Canada, Nigeria, India, Oman, Kuwait, and South Korea.
Data from Kpler specify that In June, Europe imported an average of 673,000 barrels of jet fuel per day, the highest level since October 2568. The United States and Nigeria were the largest exporters, while India recorded its highest exports to Europe since February.
In addition, around 25,000 barrels of jet fuel per day from Kuwait are expected to arrive in Europe in August, via transshipment at sea for the first time since early March.
Many European countries are accelerating production to alleviate tight supply, with Italian refineries increasing jet fuel production by 10% in the first four months of the year, enabling them to meet nearly 70% of domestic demand during March and April.
side Eni is a major Italian oil producer. The company, which accounts for approximately half of the country's jet fuel production, has increased imports of semi-finished products from outside Europe to accelerate production.
Although jet fuel prices in northwest Europe have fallen from a peak of $215.32 per barrel in late March to around $133.27 per barrel, which has helped reduce airline costs. However, analysts believe that airfares are unlikely to fall in the short term, as demand for travel remains high and many airlines are limiting the number of flights to manage fuel efficiently.
refer : www.reuters.com
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