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BP drove up European jet fuel output by 30% during Iran war
Action helped avoid major shortages
Key Takeaways:
- BP boosted jet fuel production about 30% at European refineries during the Iran conflict, helping avert shortages as shipments through the Strait of Hormuz stalled.
- The war disrupted Middle East exports and drove prices to records, but higher European output and imports from other suppliers prevented a summer supply crunch.
- Refiners including Repsol and Shell are adjusting operations to maximize jet fuel production, underscoring ongoing efforts to manage supply risks during the disruption.
BP Plc boosted jet fuel production at its European refineries by about 30% during the Iran conflict, helping the region avoid major shortages while millions of barrels were locked up in the Persian Gulf.
The outbreak of war at the end of February sparked fears that a slump in jet fuel exports would cause a severe supply crunch in Europe just ahead of peak summer demand. Prices shot to a record. Yet surging local production and increased imports from other suppliers helped the continent avoid a crisis.
“We continuously work to identify and address the next bottleneck,” BP Senior Vice President Brenda Stout said in an interview. The company has invested to allow its plants to process a wider range of crudes and alter their mix of products, boosting its flexibility to respond to a supply squeeze, she said.
Europe is a net importer of jet fuel, with most purchases coming from the Middle East in normal times. The near-halt of traffic through the Strait of Hormuz prompted multiple refiners to tweak their operations, skewing their output toward jet fuel and kerosene — a closely related petroleum product.
Spain’s Repsol SA said it increased jet fuel yields by as much as 25%. Shell Plc, which owns the giant Pernis refinery in Rotterdam, said in April the plant was churning out as much of the fuel as it could.
