As the Looming Crisis Takes Hold, Jet Fuel Inventories Hit a 63-Year Low and Europe Faces Imminent Supply Failure, Genoil Inc. Offers the Only Viable Solution That Can Close the Gap

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Genoil (OTC:GNOLF) highlights a deepening transportation fuel crisis as jet fuel inventories drop to about 21 days of U.S. supply, the lowest since 1963, with Europe expected to breach the IEA’s 23-day threshold in June 2026. Diesel stocks are about 11% below their five-year average, while nearly 800,000 bpd of refining capacity has been closed and Asian/Middle East refineries have cut runs by roughly 6 million bpd.

Genoil claims its patented upstream deep conversion specialized refinery can raise transportation fuel yields to ~80%+ from light crude, ~70%+ from medium crude, and ~100%+ from heavy Venezuelan crude, implying 400%+ yield gains versus conventional processing.

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Proprietary Deep Conversion Upstream Specialized Refinery delivers up to 400%+ more transportation fuel per barrel - no new pipelines, no additional infrastructure required.

NEW YORK CITY, NY / ACCESS Newswire / June 5, 2026 / Genoil Inc. (OTC PINK:GNOLF) - The global energy crisis triggered by the ongoing closure of the Strait of Hormuz has now moved from a geopolitical threat to a quantifiable, imminent physical emergency. The world is not running short of crude oil in the ground - it is running critically short of the transportation fuels refined from it: jet fuel, diesel, and motor gasoline. Genoil's patented upstream deep conversion specialized refinery is the only commercially ready solution capable of closing this gap.

1. THE SPECIFIC SHORTFALLS: A CRISIS MEASURED IN DAYS, NOT YEARS

Jet Fuel: U.S. jet fuel inventories are forecast to fall to approximately 21 days of supply - the lowest level since 1963, according to the U.S. Energy Information Administration. Europe is expected to breach the IEA's critical 23-day shortage threshold in June 2026, according to Fortune and the IEA. The consequences are already visible:

• Spirit Airlines has ceased operations, collapsing under the weight of soaring fuel costs.

• Lufthansa has cancelled approximately 20,000 flights and is grounding 27 short-haul aircraft to conserve fuel.

• American Airlines has warned of a $4 billion earnings hit and is raising fares and cutting routes.

• Air New Zealand has forecast a pre-tax loss of up to NZ$390 million for 2026.

• A global bidding war for jet fuel has broken out, with prices between $160 and $230 per barrel, per CNBC.

• Ryanair - Europe's largest airline by passenger volume - has begun cancelling and axing routes from 19 airports across Spain, Portugal, France, Belgium, and Germany, cutting over 3 million seats from its European schedule. The significance of this cannot be overstated: Ryanair is hedged at approximately 80% of its summer fuel at $668 per metric ton - meaning it has locked-in contract prices for most of its fuel supply. Yet it is still cutting routes. This is a critical warning signal: when an airline that is 80% hedged is nonetheless cancelling flights, it strongly suggests that the futures market is failing to deliver physical product at contracted prices. A hedge is a paper contract - if the physical fuel cannot be sourced to fulfil it, the contract defaults. Ryanair's CFO has described an "armageddon" contingency plan, warning that weaker European carriers "may not survive" the jet fuel crisis. The fact that even the most hedged, most cost-efficient carrier in Europe is pulling capacity is the clearest possible evidence that this is a physical supply failure, not merely a pricing problem.

Diesel: Diesel stockpiles are running 11% below their five-year average, if we can trust the statistics. The trucking and freight sector - which moves the majority of manufactured goods and food across every major economy - is absorbing a supply shock that standard commodity markets have no mechanism to quickly resolve.

Structural Refinery Deficit: Nearly 800,000 barrels per day of refining capacity across Europe and North America has been permanently closed in recent years. The IEA confirms that refineries in Asia and the Middle East - starved of feedstock - have already been forced to cut runs by roughly 6 million barrels per day. These plants cannot be easily reopened. New refineries take a decade to build. The structural gap in middle distillate production is not a temporary disruption - it is a permanent feature of the current supply landscape.

Source: EIA - U.S. petroleum inventories forecast lowest since 2000
Source: Fortune - Europe jet fuel to breach 23-day shortage threshold in June
Source: CNBC - Jet fuel bidding war, global stress test
Source: LADbible - Ryanair axes routes from 19 airports across Europe
Source: CNBC - Ryanair CFO warns weaker European carriers may not survive, has "armageddon" plan
Source: Tank Transport - Global Refinery Crunch on Diesel and Jet Fuel

2. WHAT GENOIL ACTUALLY DELIVERS: SPECIFIC YIELD NUMBERS

Genoil's patented upstream deep conversion specialized refinery converts the heavy residue fraction of crude oil - typically 35-40% of a barrel of WTI or Brent, and over 50% of heavy crudes - into high-value transportation fuel. The yield improvement is not incremental; it is transformational, and it varies materially by crude type:

Crude Type	Conventional Yield	Genoil-Upgraded Yield
Light Crude (WTI/Brent)	~55-60% transport fuel	~80%+ transport fuel (+40%)
Medium Crude	~45-55% transport fuel	~70%+ transport fuel (+40-50%)
Heavy Crude (Venezuelan)	~25-35% transport fuel	~100%+ transport fuel (+400%)

In the case of Venezuelan extra-heavy crude - where conventional refineries extract only 25-35% transportation fuel from each barrel - Genoil's process has estimated yield improvements in excess of 400%. This means that a barrel of Venezuelan crude processed through Genoil's deep conversion specialized refinery can effectively deliver the transportation fuel equivalent of four or more conventionally processed barrels.

Critically, Genoil's syncrude product requires no secondary refining equipment and is universally compatible with every existing refinery in the world. There is no downstream capital expenditure requirement. The deep conversion specialized refinery inserts into the upstream production chain, delivering a premium synthetic crude directly to refiners at dramatically higher effective yield -under emergency government deployment frameworks.

3. THE VENEZUELA OPPORTUNITY: UNLOCKING THE WORLD'S LARGEST RESERVES

Venezuela holds the world's largest proven oil reserves - approximately 303 billion barrels - concentrated in the Orinoco Belt as extra-heavy crude. Following the Trump administration's issuance of operating licenses to Western energy companies, Venezuelan crude oil production is projected to rise 30-40% in 2026, equivalent to an additional 300,000-400,000 barrels per day, according to U.S. Energy Secretary Chris Wright. Repsol has announced plans to triple its Venezuelan output over three years, but it isn't enough.

However, Venezuelan extra-heavy crude is largely incompatible with many conventional refinery configurations - infrastructure that most refineries do not possess and cannot build in a crisis timeline. Without Genoil's deep conversion specialized refinery, this surge in Venezuelan production will contribute minimally to the specific transportation fuel shortages the world is facing today.

With Genoil's deep conversion specialized refinery, the same barrels of Venezuelan crude become a transformative source of diesel, jet fuel, and motor gasoline - precisely the products in critical shortage. Venezuela's production surge, processed through Genoil's deep conversion specialized refinery, could become the single most impactful near-term response to the global transportation fuel crisis.

Source: World Oil - U.S. says Venezuela output could rise 30-40% in 2026
Source: CNBC - Venezuela crude oil production investment

4. THE STRATEGIC PETROLEUM RESERVE: AN EXPIRING BRIDGE

The Trump administration has authorized the largest SPR emergency release in U.S. history - 172 million barrels - as part of a broader coordinated 400-million-barrel release by 32 international allies. Back-to-back all-time weekly release records of 8.6 million and 9.92 million barrels in May 2026 have pushed SPR inventory to approximately 365-374 million barrels - the lowest in over 40 years.

Due to engineering constraints of the underground salt cavern infrastructure, the physical extraction cap is 4.4 million barrels per day. The SPR is a bridge - not a solution - and it is being consumed at an unprecedented rate. When it is exhausted, there is no comparable fallback. The window to deploy a permanent fix is measured in weeks, not months.

Source: 24/7 Wall St. - SPR sees largest weekly drain in history

5. IRAN'S TOLL SYSTEM: A STRUCTURAL SHIFT, NOT A TEMPORARY CRISIS

Iran has abandoned its forty-year threat to physically close the Strait of Hormuz by force and has instead institutionalized its control through a de facto transit toll system administered by the newly established Persian Gulf Strait Authority (PGSA). Tankers are being charged up to $2 million per transit, with payments accepted in Chinese yuan and cryptocurrency. Washington has declared the arrangement unacceptable, but global shipping firms are quietly paying to avoid seizure.

This is not a crisis that ends with a ceasefire. Iran has created a permanent revenue mechanism from one of the world's most critical chokepoints. The only durable solution is to render the Strait of Hormuz strategically irrelevant - by maximizing the transportation fuel yield from crude supplies that flow entirely outside it. That is precisely what Genoil's deep conversion specialized refinery achieves.

Source: Bloomberg - Strait of Hormuz: Ships Paying Iran Yuan and Crypto Tolls
Source: NPR - Iran wants some ships to pay to use the Strait of Hormuz

6. THE PRICE TRAJECTORY: GOLDMAN SACHS AND WHAT COMES NEXT

Goldman Sachs has formally revised its Brent crude forecast to over $100 per barrel throughout the second half of 2026 if the Strait remains constrained, rising to $120 per barrel in Q3 under a sustained blockade scenario. The bank cites 14.5 million barrels per day of Middle Eastern output losses and warns of non-linear price increases as inventories fall to the lowest levels since tracking began in 2018. Physical crude has already traded above $250 per barrel. Derivatives markets are pricing $30-$50 below physical - a signal of severe market distortion and systemic stress.

Source: OilPrice.com - Goldman: Over $100 Brent Throughout 2026

"The numbers are now undeniable," said David K. Lifschultz, CEO of Genoil Inc. "Jet fuel is at a 63-year supply low. Europe will breach its critical threshold this month. Diesel is 11% below its five-year average. Airlines are collapsing. And the SPR - the world's last emergency buffer - is being drawn down at a rate that has broken every historical record, twice in two weeks. Genoil's deep conversion specialized refinery delivers 40% or more additional transportation fuel from every barrel of light crude processed, and in excess of 400% from heavy crudes like Venezuela's. We require the support of governments to stand behind an immediate emergency deployment. The alternative is a supply failure the world has no other mechanism to prevent."

ABOUT GENOIL INC.

Genoil Inc. (OTC PINK:GNOLF) is an energy technology company specializing in proprietary upstream oil upgrading and syncrude production. Genoil's Proprietary Refinery increases transportation fuel yield from each barrel of crude oil by 40% or more for light and medium crudes, and in excess of 400% for extra-heavy crudes such as Venezuelan crude, depending on the availability of energy and quality of crude oil input. Genoil's syncrude is universally compatible with every existing refinery in the world without secondary processing equipment. For more information, visit genoil.ca.

FORWARD-LOOKING STATEMENTS

This release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially due to market, regulatory, operational, financing, and geopolitical factors. Investors should review Genoil's SEC filings for a full discussion of risk factors.

CONTACT

Investor Relations - Genoil Inc.
David K. Lifschultz, CEO
(212) 688-8868

SOURCE: Genoil Inc.

View the original press release on ACCESS Newswire

FAQ

What transportation fuel yield gains does Genoil (OTC:GNOLF) claim from its deep conversion refinery?

Genoil claims its refinery sharply boosts transportation fuel yields from various crude types. According to Genoil, light crude yields can rise to about 80%+, medium crude to about 70%+, and heavy Venezuelan crude to about 100%+, implying more than 400% yield improvement versus conventional processing.

How severe are 2026 jet fuel shortages that frame Genoil (GNOLF) as a potential solution?

U.S. jet fuel inventories are forecast near 21 days of supply, the lowest since 1963. Europe is expected to fall below the IEA’s 23‑day threshold in June 2026, highlighting a physical supply shortfall that Genoil positions its deep conversion refinery to help address.

How could Venezuelan extra-heavy crude reserves support Genoil (GNOLF) technology deployment?

Venezuela holds about 303 billion barrels of largely extra-heavy crude reserves. According to Genoil, its refinery can turn this difficult feedstock into high-yield transportation fuels, aligning with projections that Venezuelan production may rise 30–40% in 2026, or roughly 300,000–400,000 barrels per day.

What does Genoil (GNOLF) say about the U.S. Strategic Petroleum Reserve in the fuel crisis?

The company describes the Strategic Petroleum Reserve as a temporary bridge, not a lasting fix. According to Genoil, recent emergency releases totaling 172 million barrels have pushed SPR inventories to roughly 365–374 million barrels, the lowest level in more than 40 years, limiting future buffer capacity.

How might Iran’s Strait of Hormuz toll system influence demand for Genoil (GNOLF) technology?

Iran’s new Persian Gulf Strait Authority charges some tankers up to $2 million per transit. According to Genoil, this structural toll system increases costs and risk, reinforcing the need to maximize fuel yields from crude flows that bypass the Strait, a role it assigns to its deep conversion refinery.

What Brent crude price outlook does Goldman Sachs project for late 2026?

Goldman Sachs projects Brent crude over $100 per barrel in the second half of 2026. The bank indicates prices could reach about $120 per barrel in Q3 under a sustained blockade scenario, citing 14.5 million barrels per day of Middle Eastern output losses and falling inventories.