Europe is facing a critical risk of jet fuel shortages following the complete cessation of shipments from the Middle East this month.
The disruption,
triggered by the ongoing conflict and the closure of key shipping routes, comes
at a precarious time as the aviation industry prepares for the peak summer
travel season, reported WAM.
Market data indicates
that European jet fuel imports from the Middle East will vanish entirely in
April, a historic first since records began in 2017, while direct exports from
the region to Europe have plummeted to all-time lows.
European OECD nations
consume approximately 1.6 million barrels per day of jet fuel and kerosene,
while regional refineries produce only about 1.1 million barrels, leaving a
structural deficit of 500,000 barrels per day that must be met through imports.
Europe has
historically relied heavily on the Middle East, which provided roughly 60
percent of the continent's external jet fuel imports last year, according to
Kpler data.
This dependency leaves
the European market highly vulnerable to regional hostilities or the closure of
vital shipping lanes.
While airlines and
suppliers have downplayed the immediate risk of a crisis, the International
Energy Agency previously warned that Europe could face actual shortages by June
if it fails to replace more than half of its usual Middle Eastern supplies.
Meanwhile, jet fuel
prices have surged above $200 per barrel as inventories remain limited.
