Bring On the Jet Fuel Shortages

Key points

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  Jet fuel production is very exacting in terms of its production.

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  Diesel or gasoline have a broader band that you can produce them with in the distillation columns in a refinery.

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  The preferred feedstock for most refineries that make jet fuel is heavily concentrated in places like Kuwait and Iraq and Saudi Arabia.

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  Half a billion barrels of oil have not been produced or delivered.

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  Refineries will not see new shipments for the next two to three months minimum, probably considering that a lot of this stuff is Kuwaiti and Iraqi for over a year.

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  Airlines in China, Japan, Australia, New Zealand, the Philippines, Vietnam, and India are canceling flights for the next few months.

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  There is no good substitute because cargo can switch to diesel or trains if gasoline or jet fuel runs low.

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  The shortage will cling to the system for at least a year, assuming no new shooting.

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