Europe Faces Jet Fuel Shortage as Prices Reach Record High
Europe is bracing for a potential jet fuel shortage as rising crude oil costs and refinery margins make aviation fuel more expensive. According to Kpler, a trade intelligence firm, around 900,000 tonnes of Asian jet fuel are due to arrive in Europe over the next few months. This influx should alleviate some pressure on supply chains, but prices are expected to remain elevated.
George Shaw, Kpler's senior insight analyst for distillate markets, noted that jet fuel is closely tied to the diesel market, which has seen record prices recently. The average European jet fuel price reached $207.56 (EUR176) per barrel last week, a 27.8% increase from the prior month.
European refiners have increased output, and suppliers have pulled fuel from storage to bridge the gap between supply and demand. However, Shaw warned that these buffers are weakening, and refineries cannot indefinitely maintain higher jet fuel production.
Airlines for Europe, which represents major European airline groups, has not commented on how the recent price increase might affect carriers or passengers.