Airlines Scramble for Jet Fuel as Hormuz Disruption Drags On
Meets Six Sweeping Demands Declining energy affordability could trigger… Felicity Bradstock is a writer and journalist based in Mexico City.
She writes for energy websites and covers several other industries, as well as writing… The months-long closure of the Strait of Hormuz has led to severe fuel shortages around the globe, as companies battle to continue operations.
Airlines have been hit hard as they struggle to obtain enough jet fuel to maintain their regular flight schedules.
The U.S.-Israeli war on Iran led to theclosure of the Strait of Hormuz– a key trade corridor connecting the Persian Gulf with the Gulf of Oman and the Arabian Sea, via which roughly 20 per cent of the world’s oil is transported when fully operational.
Several months of closures have resulted in significant restrictions to energy trade, with many countries now facing severe fuel shortages.
In July, several European airlines announced that they were at risk of running out of jet fuel.
Europe has turned to the United States and Asia for alternative fuel imports in recent months but continues to feel the strain of the shortages.
The United Kingdom, France, and Germany are extremely vulnerable due to their heavy reliance on the Middle East for their fuel supplies.
In recent decades, several countries have reduced their refining activities in favour of a green transition, leaving them more susceptible to supply chain disruptions.
Before the war, Europe relied on the Middle East for roughly half of its jet fuel imports.
Iran has allowed limited fuel supplies through the Strait of Hormuz, but it is uncertain when normal trade will resume due to the ongoing conflict.
On 18thJune, the consultancy Energy Aspects forecast ajet fuel supply deficitacross Europe of almost 600,000 bpd in the third quarter of the year, compared to surpluses of around 116,000 bpd in the United States and 425,000 bpdin Asia-Pacific.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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