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Market Chatter: EU Transport Chief Says Europe Has Ample Jet Fuel Supplies Despite Hormuz Restrictions

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Jet fuel supplies in Europe are expected to remain sufficient in the coming months despite persisting shipping disruptions in the Strait of Hormuz, but surging prices are trimming uneconomic regional flights, Reuters reported Friday, citing Apostolos Tzitzikostas, EU Commissioner for Sustainable Transport and Tourism.

There is currently no jet fuel shortage in Europe, and there are no signs of an impending supply deficit, Tzitzikostas told Reuters in an interview. Alternative supplies from the US and Nigeria have helped replace the lost barrels from the Middle East, which account for about 20% of Europe's jet fuel imports.

However, operations at regional airports reportedly face high risks due to rising prices, with jet fuel accounting for 25% to 30% of airlines' operating costs.

The transport commissioner told the news agency that passengers will likely bear the brunt of higher fares toward the latter part of this year or in 2027 as airlines' hedges expire, although the situation could differ by airline.

Tzitzikostas also reportedly warned that a prolonged supply disruption through year-end would be "very difficult," although Europe is prepared, given the availability of emergency stocks in member states.

At present, there is a certain degree of stability, and the Commission does not see a need to redistribute reserves, according to the transport chief.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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