April 24 (UPI) — A catastrophe in global aviation fuel is taking shape, and almost no one is paying attention.
The culprit is the prolonged conflict in the Middle East and the supply insecurity it has introduced into global crude oil markets. Jet fuel is refined from crude oil, and the vast majority of jet fuel-producing nations — South Korea, Singapore, India, and Japan among them — import that crude through the Strait of Hormuz, now under sustained threat of blockade. Unlike most petroleum derivatives, jet fuel is structurally among the most exposed products in this crisis.
The consequences of a supply disruption would be swift and severe. At minimum, one-third of the world’s airports could see fleets grounded as prices spike beyond what carriers can absorb. The cascading…
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Source www.upi.com
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