Europe Faces Approaching Jet Fuel Shortage

Jet fuel inventories at the Amsterdam-Rotterdam-Antwerp hub dropped to 454,000 tons in the second week of September, marking a seven-year low. This decline leaves the region vulnerable as stocks reach their lowest levels since 2019. To fill the void, South Korea has stepped in as the primary supplier, currently exporting 129,000 barrels daily to European ports.

The broader energy landscape remains fragile, compounded by Saudi Arabia’s recent decision to cancel October crude oil shipments to European refiners following Houthi attacks on infrastructure. With energy inflation already at 14.3% as of August, the compounding scarcity of refined products threatens to push consumer prices higher. While refiners have prioritized diesel production to address current shortages, Goldman Sachs warns that this shift inevitably lowers gasoline output, potentially triggering a secondary squeeze in the gasoline market later this year.