Larry Johnson on fuel supply constraints

投稿者: Not A Charm: Mario Nawfal

🇺🇸🇮🇷 American diesel stocks are the lowest they've been since 1951, and the crude that makes diesel is trapped behind two closed straits and a broken pipeline Seventy-five years. That's how far back you have to go to find US distillate inventories this thin, and the reason is chemistry, not politics. Diesel and jet fuel come from sour crude, the heavy Gulf grade that American, Indian, Chinese and Japanese refineries were built for. It isn't leaving the Gulf. Saudi Arabia's bypass pipeline to the Red Sea is now down for five or six weeks, and Larry Johnson's arithmetic from Russia runs another month past the repair before a single barrel reaches a refinery. Two months, minimum, of shortage. Meanwhile a supertanker burns off Oman. Iran says it hit a mine, CENTCOM says a missile, and the argument only matters to insurers... to the crew it was a fire either way.