BP Plc responded to supply disruptions tied to the Iran conflict by boosting jet fuel output across its European refineries by about 30%. The company said the increase helped prevent major shortages in Europe at a time when large volumes of crude and products were effectively trapped in the Persian Gulf.
The conflict, which began at the end of February, prompted fears that curtailed exports through key shipping lanes would produce a sharp shortfall in jet fuel ahead of the summer peak travel season. Those concerns pushed prices to record levels, according to market observers. In response, higher refinery runs within Europe and additional cargoes from alternative sellers reduced the risk of a regional crisis.
BP Senior Vice President Brenda Stout explained that the company continuously works to identify and address bottlenecks. She noted BP has invested in capabilities that allow its plants to accept a wider range of crude types and to shift their product slates as market needs change - flexibility that proved useful amid the supply constraint.
"We work continuously to identify and address bottlenecks," said Brenda Stout, underscoring the company's operational adjustments.
Under typical conditions, a substantial portion of Europe's jet fuel supplies comes from the Middle East. The near-complete halt of traffic through the Strait of Hormuz forced many refiners to reconfigure operations, increasing runs of jet fuel and kerosene, a related distillate used in aviation and heating.
Other refiners in the region reported similar shifts. Spain's Repsol SA said it raised jet fuel yields by up to 25%. Shell Plc, operator of the Pernis refinery in Rotterdam, reported in April that the plant was producing as much jet fuel as it could manage.
Combined, these industry adjustments - higher local production, rebalanced refinery output, and greater imports from non-traditional suppliers - helped Europe navigate the period of acute supply pressure while large volumes remained delayed in the Persian Gulf.
Key takeaways
- BP increased jet fuel production in Europe by about 30% during the Iran conflict.
- Investments in refinery flexibility allowed BP to process more crude types and alter product mixes.
- Repsol and Shell also shifted output toward jet fuel and kerosene to help meet regional demand.