Jet fuel crisis hits Europe as summer approaches

The International Energy Agency revealed in its monthly report a sharp decline in Europe's imports of jet fuel coming from the Middle East, falling from 330,000 barrels per day in March to only 60,000 barrels in April, recording a decline of more than 80% amid the continuing geopolitical crisis and the effects of the closure of the Strait of Hormuz. The agency explained that the disruption of supplies coming from the Gulf region began to reflect directly on European fuel markets, at a critical time witnessing The continent is approaching the peak of the summer travel season, raising serious concerns about a severe shortage of jet fuel in the coming months. Europe sought to compensate for this shortfall by increasing imports from alternative sources such as the United States and Nigeria, but the additional quantities were not enough to fill the growing gap, as alternative flows amounted to only about 221 thousand barrels per day in April, according to Kepler data. In an influential development, the airline announced American "Spirit Airlines" is bankrupt and ready to completely stop its operations, becoming the first US airline to fail in part due to the sharp rise in jet fuel prices as a result of the geopolitical crisis. The data reveals Europe's heavy reliance on the Middle East, where European OECD members consume around 1.6 million barrels per day of jet fuel, while its refineries produce only 1.1 million barrels per day, leaving an import gap of more than half a million barrels per day. The International Energy Agency warned that the continuation of the Strait of Hormuz crisis without a close settlement will make it more difficult to rebalance the European fuel market, especially with the increasing pressures on alternative supply chains, stressing the need to compensate 80-90% of lost supplies to avoid widespread disruptions during the summer.