Global jet fuel shipments fell roughly 30 percent in April. That shortfall has pushed European transport ministers and the European Commission to consider allowing U.S.-standard Jet A and temporarily relaxing anti-tankering rules to head off summer shortages. The moves follow a collapse in Middle Eastern exports after attacks closed the Strait of Hormuz and forced Europe to compete for U.S. Cargoes, driving imports to about 200,000 barrels per day, up from roughly 30,000-60,000 bpd earlier. Commission officials and member-state ministers discussed diverting supplies to aviation, suspending ReFuelEU anti-tankering obligations and tapping emergency national stocks if needed; the Commission was expected to issue guidance after an EU oil coordination group met.

European transport ministers and the European Commission have opened concrete steps to import U.S.-standard jet fuel and to relax anti-tankering rules, EU documents and officials show. The discussions in April were a direct response to a supply shock caused by hostilities in late February that effectively cut Middle Eastern jet fuel flows through the Strait of Hormuz.

What ministers discussed

Officials and documents show the talks considered two immediate measures. One was allowing U.S. Jet A on some routes, even though it doesn't match the European jet fuel standard. The other was a temporary suspension of ReFuelEU anti-tankering obligations that normally require aircraft to refuel at EU airports. The change would ease pressure on airport refuelling infrastructure and lower airline costs if supplies tighten.

The European Commission said it has a full overview of member states' strategic stocks. A Commission spokesperson, Anna-Kaisa Itkonen, declined to disclose company-level data and noted airlines aren't obliged to share operational information with Brussels. Transport Commissioner Apostolos Tzitzikostas told reporters there was no evidence of widespread flight cancellations as of late April. Cyprus' Transport Minister Alexis Vafeades described the situation as "not dangerous" while urging transparent use of emergency stocks if they become necessary.

Not everyone is as sanguine. The International Energy Agency's chief, Fatih Birol, warned last month that the EU had only six weeks of jet fuel left unless alternative supplies were secured. That contrast underlines the split between the Commission's public assessment and outside warnings from market analysts and energy agencies.

Market pressure and inventories

The supply shock stems from a sharp drop in tanker flows after the Strait of Hormuz was effectively closed to routine shipments. Before the attacks, the route supplied roughly one-fifth of Europe's jet fuel imports, according to the International Energy Agency and trade intelligence cited by analysts.

Mastheads

Kpler data cited in reporting showed global jet fuel shipments fell to about 1.3 million barrels per day in April from 1.9 million bpd a year earlier, and weekly loaded volumes plunged roughly 50 percent year-on-year.

Because Europe consumes more jet fuel than it produces, the region is heavily exposed. One analysis published by Aerospace Global News put European consumption at about 1.6 million barrels per day and domestic production at about 1.1 million bpd, leaving a typical shortfall of roughly 500,000 bpd previously covered mostly by Middle Eastern shipments.

U.S. Exports have risen sharply as buyers look west. Aerospace Global News reported U.S. Jet fuel exports reached a record around 442,000 bpd in early April, up from a five-year average near 172,000 bpd. That reporting also put European imports from the U.S. At roughly 200,000 bpd, compared with pre-crisis levels of 30,000-60,000 bpd, reflecting intensified competition for cargoes.

Market participants say other exporters have tightened supply by prioritizing domestic needs. Aerospace Global News cited traders saying some exporting countries, including Singapore and China, are prioritizing home markets, further reducing exportable volumes. Kpler's Matt Smith described the market as "a slow motion car crash" as exporters reallocate cargoes and airlines bid higher for limited supplies.

Prices have reacted sharply. European jet fuel was trading above $1,500 per tonne in early May after jumping from about $830 per tonne before the Iran war, according to market reporting. Airlines have felt the impact; carriers including Lufthansa have announced capacity cuts that they attribute in part to higher fuel costs. Refiners and traders warn inventories are being drawn down rapidly. Valero Energy's chief operating officer, Gary Simmons, told investors that "Jet is incredibly short," reflecting industry concern about available product.

EU institutions weigh trade-offs. Allowing Jet A imports would provide immediate relief by broadening the pool of cargoes that can serve European airports. But switching specifications and temporarily easing anti-tankering rules would require careful coordination between regulators, airport operators and airlines to ensure safety and manage logistics. Transport ministers discussed the operational and legal steps needed at recent meetings, and some member states said they could act quickly if concrete shortfalls materialize.

The Commission and national officials are also watching inventories and pricing closely. EU documents and officials indicate they prefer targeted, temporary measures over sweeping changes, and they emphasize the importance of transparent use of emergency stocks if the market tightens further.

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The European Commission was expected to issue guidance after the EU oil coordination group met on May 7 on whether to permit U.S. Jet A imports and to relax anti-tankering rules, a step officials said could be taken quickly if concrete supply shortfalls materialize.

This article was created with AI assistance.