Wall Street closes at a record for the first time since end of January
Investing.com -- Europe is receiving record volumes of jet fuel from the United States as the region works to replace supplies disrupted by the closure of the Strait of Hormuz, according to data from Kpler and LSEG.
The strait’s effective closure due to the U.S.-Israeli war on Iran has blocked flows from the Middle East, which supplies nearly 75% of Europe’s jet fuel imports, or around 375,000 barrels per day. European airlines have urged the European Union to implement emergency measures, including widespread airspace closures, according to a document seen by Reuters.
U.S. inflows to Europe are expected to reach between 149,000 to 200,000 barrels per day in April, based on vessels discharged and those still due to arrive. This represents record highs according to LSEG data going back to 2015 and Kpler data from 2017.
The U.S. exported an estimated 442,000 barrels of jet fuel in the week ending April 3, double the 219,000 barrels averaged last year, according to Energy Information Administration data. Exports to Europe and Asia are fetching better prices due to fuel shortages in those regions.
Stocks of jet fuel held in the Amsterdam-Rotterdam-Antwerp refining and storage hub stood at their lowest level since March 2023 last week. While EU countries are required to maintain 90 days of emergency oil reserves, the requirement does not specify amounts for individual fuel types.
According to the International Energy Agency, Spain is a net exporter of jet fuel, while Britain, the region’s largest consumer, imports 65% of its demand. The IEA stated in its monthly report that if European markets cannot secure more than 50% of volumes lost from the Middle East, stocks would reach the 23-day stockpile level in June, at which point physical shortages would begin.
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