BRUSSELS, May 28 - The European Commission's energy department issued an update on Thursday following the latest meetings of its oil and gas co-ordination groups, saying the market for jet fuel across the European Union could become tighter if the situation in the Strait of Hormuz does not improve within weeks.
The communication from the Commission highlighted that developments affecting the Strait of Hormuz have had observable price effects so far, although it noted there have been no physical supply disruptions at the consumer level.
"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.
The statement reflects deliberations from the Commission's oil coordination group, which considered the current disruption and its reach across crude and refined product markets. The update emphasized that the dynamics are affecting all EU countries and that the primary manifestation observed to date has been through prices rather than through tangible shortages at the point of consumption.
Even so, the Commission warned that persistence of the present conditions could lead to a tightening of market availability, with jet fuel specifically highlighted as an area of concern if the situation does not ease over the coming weeks. The language points to a scenario in which price pressures could intensify and availability of specific refined products could become more constrained should the Strait of Hormuz remain effectively closed.
The update followed the EU's recent coordination meetings on oil and gas, and was presented as an early signal to market participants and national authorities about potential near-term risk to refined product balances across the bloc.
Summary
The European Commission said on May 28 that activity around the Strait of Hormuz has already moved prices for crude and major petroleum products within the EU and that, without improvement in the coming weeks, markets - notably jet fuel - are likely to tighten. No consumer-level supply disruptions have been reported so far.
Key points
- The Oil Coordination Group reported impacts on crude oil and all major petroleum products across the EU.
- So far the EU has seen price effects but no physical supply disruptions at the consumer level.
- If conditions in the Strait of Hormuz do not improve within weeks, markets are expected to become increasingly tighter, with jet fuel identified as especially vulnerable.
Risks and uncertainties
- Continuation of the current situation in the Strait of Hormuz could lead to tighter availability for refined products, particularly jet fuel.
- Price pressures may increase across crude and petroleum product markets even without immediate consumer-level supply disruptions.
- All EU countries are affected by the present market dynamics, creating uncertainty for fuel and energy market stability across the bloc.