Sweden issues 'early warning' of potential jet fuel shortage

Sweden has given notice of a potential shortage of jet fuel stemming from the war in the Middle East, Energy Minister Ebba Busch said on Tuesday.

A two-month war in the Middle East has shut the Strait of Hormuz and cut the global oil supply by 20 per cent in the world’s biggest-ever supply disruption, pushing up crude prices to well over $100 a barrel.

The Swedish government said that there was currently a good supply of jet fuel in the country but there could be a shortage further ahead.

"We want to issue a warning well in advance that there is a risk that there will not be enough jet fuel," Busch told a press conference, without saying when problems could arise. "In Sweden and in the Nordic region we have considerable refinery capacity which uses North Sea oil. Even if competition and with it prices have risen, supply hasn't been affected noticeably yet."

TRY TO PLAN TRIPS FLEXIBLY

Busch said Swedes should keep track of developments and try to be flexible in their travel plans.

"Don't book trips where you have to come home at a specific time. It's good to think that you might need a bit of a margin," she said, emphasising this was not a recommendation not to book travel.

Sweden could in a worst-case scenario face rationing of aviation fuel, but the situation going forward depends to a great degree on how the market adapts, Energy Agency Director General Caroline Asserup told the press conference.

The government, however, said that there was no indication that Sweden faced a shortage of petrol or diesel.

With no end to the Middle East conflict in sight, economies around the world are gearing up for the long-term consequences, including higher inflation and slower growth.

Prime Minister Ulf Kristersson told the press conference Sweden was less affected than many other nations thanks to its fossil-fuel-free electricity generation. The government has nevertheless warned that the economy will be significantly impacted.