Looming Jet Fuel Shortages?

[Quickstatus]

Not because of a lack of supply but a lack of resources to get fuel to the stations due to the artificially increased demand, speaking to my old colleagues in the stations and a mate who drives tankers their at 40% over normal volumes.

I spoke to my local servo about no diesel. I was told they are getting less than their usual deliveries.
I don't see queuing for servos around my area as one would expect with panic buying.
We are now some weeks since fuel prices going up. If demand is artificially up, where is the fuel going? Artificial demand suggests fuel is being bought then stored. I dont see people filling up jerry cans.

 

[LionKing]

I am very concerned that lack of Jet Fuel in Australia and NZ will lock down our country to the world.

I know high airfares will be a pain, however not having sufficient kerosene to keep Australia flying will have catastrophic impact to us going overseas and retain material freedom and connect with families who are abroad.

I actually wonder where Brunei and Malaysia actually have oil in their land why we don't give them incentives, for example more Australian university degree places for Malaysians and allowing Malaysian meat and vegetable imports to ensure we have stable aviation fuel supply coming in?

 

[Quickstatus]

I actually wonder where Brunei and Malaysia actually have oil in their land why we don't give them incentives, for example more Australian university degree places for Malaysians and allowing Malaysian meat and vegetable imports to ensure we have stable aviation fuel supply coming in?

Malaysia has maturing oil fields and apparently ageing infrastructure and only produces 500,000 barrels per day
Brunei only produces less than 100,000 barrels per day.
Australia total equivalent crude oil consumption per day is 1.5M barrels per day.

Whatever the incentives, I'll bet that other countries would also be doing the same.

......

The recent Australia-Singapore "agreement" does not actually "guarantee" fuel supplies either.

 

[LionKing]

Malaysia has maturing oil fields and apparently ageing infrastructure and only produces 500,000 barrels per day
Brunei only produces less than 100,000 barrels per day.
Australia total equivalent crude oil consumption per day is 1.5M barrels per day.

Whatever the incentives, I'll bet that other countries would also be doing the same.

......

The recent Australia-Singapore "agreement" does not actually "guarantee" fuel supplies either.


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I think that's the reason why Malaysia is relying on Middle East oil.

I was thinking if Australia can ask for oil from the US or Caribeean to stablise our supply?

I would imagine in any event where our oil is in low supply, aviation fuel should come first, as vegetables, fruit and livestock can be processed locally in regional areas and fly into cities for sale.

 

[Quickstatus]

I was thinking if Australia can ask for oil from the US or Caribeean to stablise our supply?

It does not matter where the oil of coming from. The problem is that the Middle East supply is significantly curtailed so everyone is scrambling for supply from alternative sources.

It is completely illogical to suggest that supply is not the problem when up to 20% of the world's crude has been curtailed.

I would imagine in any event where our oil is in low supply, aviation fuel should come first

Transport of goods in Australia is mostly by road trucks which require diesel.

 

[oz_mark]

We are now some weeks since fuel prices going up. If demand is artificially up, where is the fuel going? Artificial demand suggests fuel is being bought then stored. I dont see people filling up jerry cans.

By and large, I think some are just keeping their tanks topped up. Creates an initial boost, but they only have so much storage, so demand will drop off again.

 

[Quickstatus]

so demand will drop off again.

Correct, it cant be artificial demand all the time.

 

[LionKing]

Correct, it cant be artificial demand all the time.

I feel like some people were fearing for substantial increase in fuel price and they stored up and therefore supply was unable to catch up. Once it stablised and with the reduction in fuel excise, it should get stablised a bit.

It was also the start of the high cycle so I think we might see fuel price dropped to close to $2 for E10 and then went back up to $2.40 towards the end of April.

 

[Saab34]

Terminal Gate prices are spiking again it seems. Diesel up by 10c from tomorrow. Not sure when that actually flows to our bowser pricing.

 

[Quickstatus]

Not sure when that actually flows to our bowser pricing.

From now

 

[elanshin]

JAL and ANA are raising their fuel surcharges starting June - I believe they're doubling the fuel surcharge.