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Europe faces Q4 jet fuel supply deficit even as South Korea becomes latest big supplier
Reuters • • business
Key Points:
- Europe is expected to face a jet fuel deficit of 510,000 barrels per day in the fourth quarter due to disrupted Middle East supplies amid rising regional tensions, prompting increased imports from alternative suppliers like South Korea, Nigeria, the US, and Canada.
- South Korea's jet fuel exports to Europe have surged to a four-year high in September, reaching 129,000 barrels per day, driven by increased refinery output and higher crude processing rates.
- European jet fuel inventories, particularly in the Amsterdam-Rotterdam-Antwerp hub, have dropped to their lowest levels in seven years, intensifying reliance on imports from Asia and other regions.
- The price differential between Asian and European diesel markets is encouraging more exports to Europe, with Asia acting as a flexible supplier when arbitrage conditions are favorable.
- South Korea's refinery activity is at a seven-year peak, with July jet fuel output and exports at multi-year highs, supporting Europe's growing demand amid ongoing supply challenges.
