On Monday, April 20, the Dutch government estimated that the European Union could utilize its domestic production and strategic reserves to supply the EU economy with enough aviation kerosene to last for approximately five months.

The Dutch government's estimate—that the EU can meet five months' worth of demand using domestic production and strategic reserves—suggests that supplies are ample. This situation is likely to reduce the need for imports, thereby exerting downward pressure on spot prices. This directly reflects the market risk of oversupply, resulting in price pressure.

As a downstream product of crude oil, an ample supply of aviation kerosene implies weakening demand for crude oil, as domestic production within the EU reduces the region's reliance on crude oil imports. This is expected to have a bearish impact on crude oil spot prices.

SunSirs has been continuously tracking price data for over 200 commodities for nearly 20 years, please contact support@sunsirs.com for subscription.