Europe faces Q4 jet fuel supply deficit even as South Korea becomes latest big supplier
- Europe faces a projected fourth-quarter jet fuel deficit of 510,000 barrels per day, prompting increased reliance on far-flung suppliers including South Korea, which is boosting exports to a four-year high this September.
- Rising Middle Eastern tensions and the ongoing Iran war reduced Europe's jet fuel imports by roughly half over the past half-year. Consequently, independent stocks at the Amsterdam-Rotterdam-Antwerp hub hit their lowest levels in seven years in the week to September 10.
- September imports from South Korea surged to 129,000 barrels per day, the highest volume since October 2022. July refining output in South Korea hit a seven-year high of almost 13.89 million barrels, government data showed.
- Market intelligence firm Sparta Commodities' head of commodities James Noel-Beswick noted that wide price spreads between Asian and European benchmarks incentivize shipments from far-flung suppliers. European diesel markets remain firmer than those in Asia, fueling the arbitrage opportunity.
- Europe remains highly exposed to further supply disruption risks as Middle Eastern tensions persist. With the continent expected to remain short of jet fuel, experts anticipate imports from South Korea and other distant suppliers will continue sustaining European markets.
22 Articles
22 Articles
Global shipping data predicted that Europe would face a shortage of aviation fuel supplies during the last quarter of the current year
Europe faces Q4 jet fuel supply deficit even as South Korea becomes latest big supplier
Europe faces a fourth-quarter jet fuel deficit, even as it turns to far-flung suppliers including South Korea, which is set to boost its jet exports to Europe to a four-year high in September, according to analysts and shipping data.
This is favorable for Asian suppliers, as Europe is forced to buy fuel at a much higher price than before the Iran war.
The war in the Middle East is disrupting Europe's jet fuel supply chain. Stocks in the Amsterdam-Rotterdam-Antwerp region have fallen to their lowest levels in seven years, and Europe is expected to face a jet fuel shortage of 510,000 barrels per day in the final quarter of the year. Rising fuel prices, a major expense for airlines, are putting increased pressure on ticket prices.
Analysts and shipping data reported that Europe would face a shortfall in aviation fuel supply during the fourth quarter of the year despite resorting to distant suppliers, including South Korea, whose exports of aviation fuel are scheduled to increase to Europe in September to its highest level in four years. The continent's imports of aviation fuel from countries such as [...] are increasing in Europe's deficit of aviation fuel in the fourth q…
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