-- Europe's refineries are running at full tilt to boost jet fuel output as stocks fall to 597,000 metric tons and Middle East supply disruptions tighten markets, S&P Global reported Thursday.
Frans Everts, president-director of Shell (SHEL) Nederland, said that European refineries have shifted to "max jet mode" amid Middle East supply disruptions that are tightening aviation fuel availability, the report added.
Everts said refiners can only tweak output by a few percentage points as plants already prioritize jet fuel production over other products amid strong demand, according to the report.
Shell operates the 404,000 barrels-per-day Rotterdam complex, Europe's largest refinery, which can only marginally increase jet fuel production despite surging airline demand, the report noted.
Airlines have started responding to tighter supply, with Lufthansa canceling 20,000 flights through October while fares rise, and European Union officials plan to track jet fuel inventories across the bloc, the report said.
Jet fuel and kerosene inventories at the Amsterdam-Rotterdam-Antwerp hub dropped to 597,000 tons, down 7% over the week and 10% over the year, reaching the lowest level since April 2020, the report said, citing data from Insights Global.
The last comparable low came on April 2, 2020, when stocks stood at 572,000 tons, the report noted.
Europe has increasingly turned to imports from the US Gulf Coast to offset reduced shipments from the Middle East, the report added.
Everts said jet fuel tops demand in Europe, followed by diesel, while Shell shifts crude sourcing away from the Middle East and uses its trading network to secure supply and optimize flows, according to the report.
The company expects significantly higher earnings from trading and optimization in its chemicals and products division over the quarter, after lower commodity prices weighed on profits earlier in 2025, the report added.
Shell's Rotterdam site also produces intermediate components rather than only finished fuels, allowing the company to capture higher value by selling feedstocks that other processors can upgrade further, according to the report.
has reached out to Shell for any comments.
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