Europe faces Q4 jet fuel supply deficit even as South Korea becomes latest big supplier
Energy Aspects forecasts a 510,000 bpd fourth-quarter shortfall as South Korean exports to Europe reach a four-year high, analysts said.
- 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.
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30 Articles
Nigeria and South Korea help keep Europe flying as Iran war creates 510,000-barrel daily jet fuel gap
Nigeria and South Korea are becoming increasingly important to Europe’s aviation fuel supply as the Iran war disrupts traditional trade routes and leaves the continent facing a deficit of 510,000 barrels per day.
Global shipping data predicted that Europe would face a shortage of aviation fuel supplies during the last quarter of the current year
Svenska Dagbladet
Europe is once again facing a deficit of jet fuel in the coming months, according to analysts. This despite a sharp increase in exports from, among others, South Korea in September, reports the Reuters news agency, citing consulting firm Energy Aspects (EA).
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.
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