Energy Aspects Sees Europe’s Q4 Jet Fuel Shortfall at 510,000 Barrels a Day

Energy Aspects expects Europe’s jet fuel supply shortfall to reach 510,000 barrels a day in the fourth quarter. According to Sina Finance, inventories at major local storage and refining hubs have fallen to a seven-year low, and Europe will need to increase cross-regional imports to fill the gap, adding pressure to airlines’ fuel costs. The consultancy said the gap between European jet fuel consumption and local supply is likely to remain elevated in the fourth quarter. According to Sina Finance, the low inventory level has narrowed Europe’s buffer against import delays, refinery outages, and demand swings. The article also said global refining systems have struggled to quickly lift supply. According to Sina Finance, the International Energy Agency said global refinery runs rose to 81.4 million barrels a day in August, but were still 4.2 million barrels a day below a year earlier. European air traffic and jet fuel prices also remained high. According to Sina Finance, Eurocontrol data showed Europe’s air network averaged 35,893 flights a day from September 7 to September 13, up 2.6% year on year, while average jet fuel prices reached $4.58 a gallon on September 11, up 18% from two weeks earlier and close to the record high set in April. If the fourth-quarter shortfall stays at 510,000 barrels a day, airlines’ fuel procurement and hedging costs will remain under pressure.