Record jet fuel flows from US and Nigeria reach Europe
Record jet fuel shipments from the US and Nigeria are arriving in Europe to offset lost Gulf imports. Regional storage levels have fallen to a three-year low.
Europe is currently navigating a significant jet fuel supply challenge, leading to record-breaking imports from non-traditional partners as regional stability in the Middle East remains volatile. The disruption of tanker traffic through the Strait of Hormuz, exacerbated by the ongoing conflict involving Iran, has forced European markets to seek alternatives to the Gulf, which previously provided nearly 75% of the continent's aviation fuel. According to data from Kpler and the LONDON STOCK EXCHANGE GROUP, the United States is poised to deliver between 149,000 and 200,000 barrels per day (bpd) to Europe this April. This represents a historical high for American exports to the region. Simultaneously, Nigeria has emerged as a critical swing supplier, contributing approximately 66,000 bpd following the 2024 launch of the Dangote refinery. The shift in trade flows comes as global energy benchmarks, including Brent Crude Oil and West Texas Oil, continue to influence the pricing of refined products. While the United States remains the world's largest consumer of jet fuel, higher prices in Europe and Asia have incentivized record-level exports. In early April, U.S. jet fuel exports reached an estimated 442,000 barrels, more than doubling the average recorded last year. > European airlines have urged the European Union to step in with emergency measures, including widespread airspace closures, as per a document seen by Reuters. Within Europe, the impact of the supply crunch varies by nation. The United Kingdom, the region's largest consumer of aviation fuel, relies on imports for 65% of its total demand. In contrast, Spain maintains its status as a net exporter. However, the overall regional inventory is under pressure, with stocks at the Amsterdam-Rotterdam-Antwerp (ARA) hub falling to their lowest levels since early 2023. The International Energy Agency (IEA) has warned that if Europe cannot replace at least half of the volumes lost from the Gulf, stockpiles could drop to a critical 23-day level by June, potentially triggering physical shortages. Meanwhile, the supply chain pivot has created domestic friction in Africa; Nigerian airlines recently threatened to ground operations due to a nearly 270% spike in local fuel prices since February.
