Europe will face a daily shortage of 510,000 barrels of jet fuel in the fourth quarter. This shortage has occurred due to rising tensions in the Middle East and the Iran war. Since the onset of the Iran war, Europe has been trying to increase its jet fuel imports from countries like Nigeria, the United States, and Canada.
Jet Fuel Imports from South Korea
According to cargo flow data, South Korea has become one of the main sources of jet fuel supply for Europe. Jet fuel imports from South Korea reached 129,000 barrels per day in September, the highest level since October 2022. This shift in jet fuel supply has occurred due to a significant reduction in imports from the Middle East, especially Iran.
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Impact of War on Jet Fuel Supply
The Iran war has had a direct impact on the jet fuel supply in Europe. Forecasts indicate that as tensions continue, this shortage may worsen. The consulting firm Energy Aspects estimates that Europe will face a daily shortage of 510,000 barrels of jet fuel in the fourth quarter, while the United States and the Asia-Pacific region will face surpluses of 18 and 419 thousand barrels per day, respectively.
The increase in jet fuel imports from South Korea has coincided with a decrease in jet fuel reserves in Europe. Fuel reserves at the Amsterdam-Rotterdam-Antwerp (ARA) oil refining and storage hub fell to their lowest level in seven years in the week ending September 10. This situation poses a serious risk to fuel supply in Europe.
Meanwhile, diesel prices in Europe have reached historic highs, benefiting fuel suppliers. The widening price gap between Asian and European markets has made exports of fuel to Europe more profitable for suppliers.
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