UPDATE 3-Sweden issues "early warning" of potential jet fuel shortage, Ryanair CEO scoffs

Sweden warned on Tuesday of a potential shortage of jet fuel stemming from the war in the Middle East, with the country's energy minister telling travellers they needed to build some ‌flexibility into their plans where possible. The warning was dismissed by Michael O'Leary, the CEO of Europe's largest carrier by passenger numbers. A two-month war in the Middle East has shut the Strait of Hormuz and cut the global oil supply by 20% in the world's biggest-ever supply disruption, pushing up ‌crude prices to well over $100 a barrel. The Swedish government said 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," Energy Minister Ebba 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," she added.

GOVERNMENTS ARE 'LATE AND WRONG', RYANAIR BOSS SAYS Asked about the comment, Ryanair's O'Leary said: "As usual, the governments are late ⁠and wrong."

"We think the risk of a supply disruption is receding," he told Reuters on the sidelines of a business conference in Oslo. 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 to avoid 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.

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