Jet Fuel Crisis in Europe and Risk of Air Ticket Price Hikes
The deepening jet fuel crisis in Europe due to supply disruptions in the Middle East is pushing the continent toward alternative countries and could reflect as price increases on tickets.
Following the Iran war, the jet fuel crisis in Europe continues as Middle East supplies are disrupted. While the continent turns to alternative countries, experts state that the crisis could be reflected as price hikes on air tickets.
Middle East Supplies Disrupted
Since the outbreak of the Iran war, supplies in the Middle East have been disrupted, cutting off approximately half of Europe's jet fuel imports.
Shift Toward Alternative Countries Began
The continent has begun importing more jet fuel from countries such as Nigeria, the US, and Canada.
With escalating tensions in the Middle East, Europe continues to face the risk of further supply disruptions.
Fourth Quarter Deficit Expectation
Energy consultancy firm Energy Aspects estimates that Europe will experience a daily deficit of 510,000 barrels of jet fuel in the fourth quarter.
In contrast, surpluses are projected to be 18,000 barrels in the US and 419,000 barrels in the Asia-Pacific region.
Increased Shipments from South Korea
South Korea became the newest major source of jet fuel shipments to Europe in September.
Import Volume at Record Levels
According to Kpler data, fuel imports from the Asian country to Europe reached 129,000 barrels per day in September.
This figure was recorded as the highest level seen since October 2022.
Inventories at Seven-Year Low
Imports from South Korea also coincide with low inventories.
Inventories at the Amsterdam-Rotterdam-Antwerp oil refinery and storage hub fell to their lowest level in the last seven years in the week leading up to September 10.
Expectation of Price Hikes on Tickets
According to experts, if the jet fuel crisis in Europe continues, air ticket prices are expected to be hiked in the upcoming period.