Surge in Oil Prices Pushes Fuel Costs Up in US and Europe
With oil prices surpassing $90 per barrel, fuel prices in the United States have risen by 10 percent. Reuters reports that this increase has intensified economic pressure on American citizens and raised concerns about rising inflation.
According to Reuters, the rise in gasoline and diesel prices ahead of the November midterm elections has become a significant political test for the Republican Party, led by US President Donald Trump. Analysts say energy market fluctuations could influence the political landscape during the elections.
At the same time, in Europe, the Financial Times reported an unprecedented surge in jet fuel prices. On Thursday, prices in the Northwest European market rose 12 percent to $1,416 per ton, marking the highest level since June 2022.
Based on data from the Argus Institute, jet fuel prices have increased 71 percent in one week, with the spread between jet fuel and Brent crude oil reaching $97 per barrel—a new record in the energy market.
In the Asian market, the price gap between jet fuel and Brent crude oil temporarily reached about $200 per barrel before decreasing to around $80. Before the war, this gap was only between $20 and $25. Some analysts describe the current situation as abnormal, noting that in some transactions, jet fuel prices doubled those of crude oil.
Experts attribute the primary cause of this price surge to disruptions in the Strait of Hormuz. The Strait of Hormuz is one of the world’s strategic energy transit routes, and restricted tanker movement there can reduce the supply of crude oil and products such as jet fuel. Estimates show that around 40 percent of Europe’s jet fuel demand is met through this route, with Kuwait being the largest supplier of this product to the European market.
An increase in flights transporting stranded passengers has also added pressure to the market. According to FlightData24, Muscat airport in Oman saw 273 flights on Wednesday, compared to 248 flights before the war began.
Reports indicate that fuel shortages at Muscat airport have forced some airlines to refuel at alternative airports such as Riyadh or Cairo. This has raised operational costs and disrupted flight schedules.
