Key insights
- The European Commission warns of potential jet fuel shortages in the EU if the Strait of Hormuz situation worsens. This could lead to higher jet fuel prices globally, indirectly impacting US airlines and potentially contributing to inflationary pressures, albeit mildly.
BRUSSELS, May 28 (Reuters) - The market for jet fuel in the European Union could get tighter if the situation in the Strait of Hormuz does not improve within weeks, said the European Commission on Thursday.
The European Commission’s energy department issued an update on Thursday following the latest meetings of its oil and gas co-ordination groups.
"The Oil Coordination Group signalled that the closure of the Strait of Hormuz impacts both crude oil and all major petroleum products, and that all EU countries are affected by the dynamics. So far, the EU has been experiencing price effects, with no physical supply disruptions at consumer level," it said.
"However, if the situation does not improve in the next weeks, markets are expected to become increasingly tighter, especially for jet fuel," it added.