Australia and Japan face jet fuel supply crunch as China cuts exports
Both Australia and Japan are heavily reliant on Chinese jet fuel, but shipments have plunged in recent weeks amid the Iran war
China is Asia-Pacific’s largest jet fuel and kerosene exporter, but shipments from the country fell nearly 40 per cent month on month in March to 204,000 barrels per day, figures from trade data provider Kpler showed.
The cutback is likely to hit hardest in Australia and Japan, which are both heavily reliant on Chinese jet fuel, according to Kpler. Other countries affected include Vietnam, Malaysia, the Philippines, Singapore, South Korea, Canada and the United States.
Global jet fuel prices have roughly doubled since the start of the war, soaring from US$99.40 per barrel during the last week of February to US$195.19 per barrel last week, according to data from market intelligence firm Platts.
Scott Charlton, chief executive of Sydney Airport, warned in early March that there were no guarantees that Australia’s airports would receive aviation fuel the following month, as the country remained overreliant on overseas supplies.