European oil refiners and airlines confident jet fuel shortages can be avoided

{"text":[[{"start":10.5,"text":"European airlines and oil refiners are growing more confident the continent can avoid outright jet fuel shortages this summer after plants maximised output, boosted imports and governments tapped strategic reserves."}],[{"start":23.5,"text":"While refiners still believe the peak travel season will be a “stress test” for the sector, given the loss of supplies from the Middle East, multiple oil companies said a warning of shortages within weeks from the International Energy Agency seemed unlikely to come to pass."}],[{"start":40.2,"text":"Spanish energy group Repsol said it had increased jet fuel production for the coming months by 20 to 25 per cent compared with the same period last year, by reconfiguring its refineries to produce higher kerosene yields from each barrel of crude processed."}],[{"start":56.1,"text":"The increase is unusually large for a refining system where operators typically have limited flexibility to shift output between products. "}],[{"start":64.5,"text":"Antonio Mestre, head of refinery operations at Repsol, said the move was intended to “get the summer season covered”, as Spain typically experiences intense jet fuel demand during the peak travel period, with the company also delaying planned maintenance."}],[{"start":79.85,"text":"Europe has so far avoided severe disruption after the head of the IEA warned in April that the region had “maybe six weeks of jet fuel left”, with airlines curbing only a handful of unprofitable short-haul routes. "}],[{"start":93.14999999999999,"text":"British Airways said earlier this month that it had enough suppliers for its entire summer schedule, while Air France said its airports had sufficient reserves to cover several months. "}],[{"start":102.69999999999999,"text":"Wizz Air chief József Váradi said rising jet fuel prices, while painful, had helped Europe adapt, as US and Nigerian refineries sent additional exports to the region."}],[{"start":115.1,"text":"“That kind of market price mobilises forces,” he said. "}],[{"start":119.3,"text":"Jet fuel prices in northern Europe surged to a record high of $1,904 per tonne in early April, more than double before the crisis began, according to Argus Media. Last week jet fuel traded around $1,328 per tonne, 60 per cent higher than prewar levels."}],[{"start":138.45,"text":"Last week, Istanbul airport’s chief commercial officer Server Aydin told the FT that the airport, which has seen increased demand for transfer traffic after the closure of the Gulf’s main hubs, was fine for supplies because it sourced from many different suppliers."}],[{"start":153.39999999999998,"text":"“Diversification is the key,” he told the FT."}],[{"start":156.89999999999998,"text":"Galp, the Portuguese energy company, also said it was “maximising” jet fuel output."}],[{"start":163.29999999999998,"text":"“No disruptions to supply are anticipated in the coming months,” the company said, adding that domestic consumption was expected to be “fully covered” by increased production and committed import contracts."}],[{"start":174.89999999999998,"text":"Eugene Lindell, an analyst at energy consultancy FGE NexantECA, estimated that higher European refinery yields could add roughly 100,000 barrels a day of jet fuel, or about 20 per cent of the supplies Europe imported from the Middle East before the Iran war."}],[{"start":192.04999999999998,"text":"One European refiner said its March and April results were likely to be among the highest in the company’s history, given the surge in jet fuel, illustrating the incentive to raise production at the expense of other fuels."}],[{"start":204.7,"text":"“We have to take profit of the moment,” the person said."}],[{"start":null,"text":"

"}],[{"start":208.6,"text":"Lindell estimated that the release of strategic inventories by IEA members would cover about 34 per cent of Europe’s jet fuel supply deficit in 2025, while increased imports from countries including the US and Nigeria could fill the remaining gap."}],[{"start":224.1,"text":"European jet fuel demand in the second quarter of this year is also estimated to have eased by about 2 per cent due to airlines trimming unprofitable routes — far from the severe demand destruction initially feared."}],[{"start":236.65,"text":"However, traders warned that Europe still could not afford to be complacent."}],[{"start":242.25,"text":"Łukasz Strupczewski, a senior trader at Polish energy company Orlen, said the summer would probably be a “stress test” for the “whole global energy security system”."}],[{"start":252.8,"text":"“If I had been working here for only two or three years, I would say, no problem,” said Strupczewski, who has been a trader for nearly 20 years. “But it has been too long.”"}],[{"start":263.85,"text":"“A tiny change in current conditions might cause a lot of problems for everybody,” he added."}],[{"start":276.15000000000003,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1779088460_4050.mp3"}