Jet fuel imports from Asia to Europe reached a record this summer as prices subsided from 2022 highs, the Financial Times has reported, noting the bulk of the record imports came from China and South Korea, cementing their dominance in fuel markets.
Citing data from energy analytics provider Vortexa, the FT reported that Europe has imported some 11.5 million barrels of jet fuel from Asia since the start of August alone, which was a decline from June and July.
“We have record arrivals from the Far East if you look at the amount of [jet fuel] loading out of China and Korea, and that’s both a pull and push,” the publication quoted one jet fuel trader as saying.
China, in particular, has seen a substantial increase in jet fuel production thanks to robust demand that, unlike gasoline and diesel demand, has not been hurt by alternatives such as EVs for gasoline and LNG for diesel.
Yet the increase in jet fuel imports into Europe speaks not only of robust supply but also healthy demand on a continent that has made it its mission to significantly curb air travel because of aircraft emissions. It appears that this goal will remain elusive for the time being as fuel prices decline from their 2022 peaks, making air travel more affordable again.
There is, however, a problem, and that problem is European countries’ growing dependence on imported fuels as local refineries shut down because they cannot compete with their Asian counterparts. Europe has been trying to become more self-sufficient in energy matters, but it has not been particularly successful.
“As you get more European refineries closing down or being put out of business by newer, more modern, shinier refineries in the Far East, the natural flow of events is that you get more oil coming from the Far East,” the jet fuel trader who spoke to the FT noted.
By Irina Slav for Oilprice.com
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