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EU Energy Gatekeeper Warns of Fuel Supply Constraints if Hormuz Issue Remains Unresolved

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While there are no immediate fuel shortage concerns in the EU, supply constraints may start emerging in the coming weeks if flows through the Strait of Hormuz remains blocked, with jet fuel remaining the primary concern, the bloc's Directorate-General for Energy said in a statement on Monday.

The EU's Oil Coordination Group, industry officials and representatives from the European Commission, International Energy Agency, North Atlantic Treaty Organization met on Monday to assess the supply security situation in Europe amid the ongoing Middle East crisis.

Among the issues discussed during the meeting were the outlook for the EU and its coordinated approach if the situation remained unresolved and continued into June, the statement said.

"While EU emergency stocks can be released if needed, OCG experts underlined that, if the situation persists, there will be the need to match any emergency stock releases with fuel-saving measures, so that emergency stocks can be managed more efficiently and for a longer period," it added.

The EC also presented last week's transport guidance, clarifying issues including those related to airline slot flexibilities and European Union Aviation Safety Agency's safety bulletin on using Jet A aviation fuel in Europe, the statement said.

The Group will continue to meet on a regular basis to review and ensure a coordinated response related to jet fuel supplies in the continent and the overall impact of Middle East conflict in Europe, the statement said.

IEA Executive Director Fatih Birol on Monday said commercial oil stockpiles are "declining rapidly" due to the ongoing energy supply crisis arising from the Middle East conflict, with inventories expected to last a few weeks, multiple media outlets reported.

Addressing reporters on the sidelines of the Group of Seven finance leaders meeting in Paris, Birol said the release of stocks from the strategic reserves increased supply by about 2.5 million barrels of oil per day, but these reserves were limited, Reuters reported.

Birol warned that inventories are likely to squeezed further with the commencement of the travel and planting season, which is expected to lead to higher demand for diesel, fertilizer, jet fuel and gasoline.

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