The price of Jet Fuel has jumped 140% since the Strait of Hormuz closed, and it's only going to get worse.
Jet Fuel is the most price-sensitive hydrocarbon fuel because very little of it is refined, there is very little storage capacity for it, and the storage tanks are specialized.
Jet fuel has very specialized tank storage requirements. It cannot be stored in any tank that has previously stored crude oil or any other hydrocarbon. Therefore there is not much stored, unlike many other products like diesel and gasoline.
You can only produce mainstream jet fuel from refineries; a mere ~1% is "sustainable" aviation fuel globally.
Asian refineries are reducing Aviation Jet Fuel runs because their crude is stuck at the Strait of Hormuz. Moreover, Persian Gulf refineries have also been hit by the Iran attacks.
With oil production close to being forced into actual SHUTDOWN because Gulf Nations have used up all their storage, longer run cuts are expected.
Lack of storage + Lower supply from refining runs = Recipe for disaster!
Today, Jet Kerosene hit $225.44 per barrel; up 140% over last month. Airlines have no choice but to pass this price increase along to the traveling public. Air Travel, and Air CARGO, is going to get a whole lot more expensive.
