Europe will face a kerosene shortage in the fourth quarter / South Korea increases its exports

Europe will face a jet fuel shortage in the fourth quarter, despite imports from distant suppliers, amid disruptions caused by the war in Iran to deliveries from the Middle East, according to Reuters, as cited by Agerpres.

Consulting firm Energy Aspects estimates that Europe’s kerosene shortage will reach 510,000 barrels per day. By comparison, the United States is expected to record a surplus of 18,000 barrels per day, while the Asia-Pacific region is expected to have a surplus of 419,000 barrels per day. The situation is similar to that observed in the third quarter.

In September, South Korea became an important source for the European market, with deliveries of approximately 129,000 barrels per day, the highest level since October 2022. Exports are being supported by the price difference between Asian and European markets.

Supply pressure is compounded by low inventories at the Amsterdam-Rotterdam-Antwerp hub, which have fallen to their lowest level in seven years. At the same time, South Korean kerosene production reached its highest level in seven years in July, while exports rose sharply, supported by higher crude oil processing rates at refineries.