Standard & Poor’s Global agency revealed that Northwest Europe’s imports of jet fuel ranged between 200,000 and 300,000 barrels per day in the first four months of 2022, about half of which came from the Middle East, particularly from Kuwait, Saudi Arabia and the UAE, while the other half came from Asia.
The agency stated that suppliers of jet fuel in the Middle East are working to increase their exports to Europe, to take advantage of the high demand for air travel after easing the embargo measures that accompanied the ‘Corona’ pandemic, reports a local Arabic daily.
The agency quoted traders as saying that it is likely that the West’s requirements for aviation fuel will increase, due to a mixture of national and international holidays, and the easing of border restrictions in an increasing number of countries, which will see more travelers fly by air.
Traders said that the recovery in demand for jet fuel in Europe due to the start of the travel season, low stocks and the lack of local resources, led to an increased demand for shipments from the Middle East.
The agency pointed out that Europe suffers from a shortage of jet fuel, which is being compensated by markets east of Suez, such as the Gulf and India, and quoted a Middle Eastern trader as saying that jet fuel from the region is regaining strong demand for it, with the start of the spring and summer flight season.
The agency added that despite the relatively weak demand for jet fuel compared to the demand for diesel, it is strong if viewed separately, while there is still demand from Europe and the United States on quantities that compensate for the shortfall.
The agency revealed that regional prices are reflecting the strength of demand, with the monetary differences recording their highest level in 3 months, exceeding $7.6 a barrel, while the last assessment level was $7.8 a barrel on April 25.
The agency stated that most traders expect that trade flows between the Middle East and Europe will not be affected, even in the event of an embargo on Russian oil, given Europe’s weak dependence on Russian jet fuel exports, and quoted a trader dealing with a refinery in the Middle East as believing that sanctions against Russia will not affect at all on jet fuel flows.
The agency estimated Europe’s imports of Russian jet fuel from last January to April at about 10,000 barrels per day, pointing out that the imposition of a ban on Russian oil is not expected to lead to an increase in demand for jet fuel from the Middle East.
She added that the increase in the production of large refineries in the region, such as Al-Zour and Jizan refineries in the second half of 2022, will add good quantities of jet fuel to the market, which will reduce the possibility of a significant impact on supply.
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