Europe has only six weeks’ supply of jet fuel left owing to Iran war, says energy chief | Airline industry
Europe has just six weeks of jet fuel supplies left before shortages due to the Iran war, according to the head of the global energy watchdog.
Fatih Birol, Executive Director of the International Energy Agency, said that flights may be canceled “soon” if oil supplies from the Middle East are not restored in the coming weeks.
“I can tell you soon we will hear the news that some of the flights from city A to city B might be canceled as a result of lack of jet fuel,” he told the Associated Press.
The US-Israeli war on Iran has caused turmoil in global energy markets since the first attacks in late February. In retaliation, Iran effectively closed the Strait of Hormuz, a vital export route for oil from the Gulf.
The United States and Iran agreed to a two-week ceasefire last week, but talks to end the war broke down over the weekend. Indirect talks mediated by Pakistan continue.
Brent crude futures prices, a global benchmark, remain more than 30% higher than pre-war levels. The rapid increase in oil prices put pressure on US President Donald Trump.
However, there has not yet been a complete shortage of jet fuel, as shipments that departed before the war continue to arrive. The last cargoes have now arrived in Europe.
Birol said Europe has “maybe about six weeks” [of]According to the AP report, “jet fuel remains.” His comments add to those of Airports Council International Europe, a lobby group, which told EU energy and transport commissioners last week that the bloc was three weeks away from a shortage.[jetfuelleft”APreportedHiscommentsaddtothatofAirportsCouncilInternationalEuropealobbygroupthatlastweekwrotetotheEU’senergyandtransportcommissionerssayingtheblocwasthreeweeksawayfromshortages[jetfuelleft”APreportedHiscommentsaddtothatofAirportsCouncilInternationalEuropealobbygroupthatlastweekwrotetotheEU’senergyandtransportcommissionerssayingtheblocwasthreeweeksawayfromshortages
Airports and airlines typically have about six weeks of fuel supply in normal times, according to people in the industry. But the Iran war has dragged on long enough to deplete the system of extra reserves, and other suppliers do not have sufficient capacity to replenish supplies from the Gulf.
“In the past, there was a group called Dire Straits,” Birol said. “This is a very difficult situation right now, and it’s going to have huge impacts on the global economy. And the longer this goes on, the worse it’s going to be for economic growth and inflation around the world.”
Birol told the AP that the impact will be “higher oil prices, higher gas prices, higher electricity prices” and that some parts of the world will be “hit worse than others.”
Some airlines have canceled flights that would make a loss due to high fuel prices, especially if there are no regulations to protect against large increases.
But even those who choose to hedge may have to consider flight cancellations.
British airline easyJet said on Thursday it had no concerns about fuel supplies for the next month. easyJet CEO Kenton Jarvis said: “We have visibility until mid-May and have no concerns.”
