IEA: Refinery output increase alleviates concerns over aviation fuel shortage

(1) The International Energy Agency (IEA) stated in its monthly report that increased refinery output and rising exports have helped alleviate market concerns over a possible severe shortage of jet fuel, especially ahead of the summer travel peak. (2) In March, US and European refiners produced over 2 million barrels per day and 1.3 million barrels per day of jet fuel respectively, with output rising further in April and May. US exports to Europe surged to record highs while domestic inventories remained above average, further enhancing export supply capacity. (3) Nigeria is also an important supplier of jet fuel to Europe. The rise in European middle distillate refining margins and the completion of refinery maintenance in countries such as Italy and Norway have led to an increase in processing volumes. The IEA emphasized that the growth of jet fuel output has not come at the expense of diesel production, as diesel prices remain at levels sufficient to maintain their share of output.