The EU, with only six weeks of jet fuel left in reserve, reaches out to the U.S. for help

[The Financial News] As concerns grow over a possible shortage of jet fuel caused by the conflict in the Middle East, the European Union (EU) has begun drawing up a broad set of measures, including imports of U.S. jet fuel and mandatory emergency stockpiles.
On the 21st local time, Euronews reported that Apostolos Tzitzikostas, the EU commissioner for transport, sought to calm market jitters by announcing plans to diversify jet fuel import sources and strengthen market monitoring.
Tensions have risen in Europe, where self-sufficiency in jet fuel is low, after Iran's blockade of the Strait of Hormuz cut off one-fifth of global oil and liquefied natural gas (LNG) supplies.
Earlier, Fatih Birol, secretary-general of the International Energy Agency (IEA), warned that "Europe has only six weeks' worth of jet fuel in stock" and raised the possibility of large-scale flight cancellations this summer.
In response, Commissioner Tzitzikostas said, "There is indeed supply pressure, but so far there is no evidence of an actual shortage," adding, "We do not expect a summer of mass flight cancellations."
The EU is moving quickly to restructure its supply chains in order to reduce dependence on the Middle East. That is because 30% to 40% of EU jet fuel demand relies on imports, and about half of those imports come from the Middle East.
The European Commission is actively reviewing imports of U.S. jet fuel as an alternative source to the Middle East.
It also plans to set up a body to track supply and demand in real time and expand monitoring from jet fuel to all energy sources.
The EU is also considering imposing minimum jet fuel stockpile requirements on member states in response to the crisis. The goal is to require each country to secure a certain level of emergency reserves to prepare for future energy shocks.

jjyoon@fnnews.com Yoon Jae-jun Reporter