Loading ...Will the diesel shortage affect the miners in Australia?
Had a conversation with a contact in Australia. Confirmed that diesel supplies are constrained. Approx 80% of Aussie diesel is supplied by Asian refiners who get the feedstock from the ME which is now limited. A one month supply. Some large agricultural users who do not have a guaranteed supply will not plant. They grow all year in the warmer areas. Aviation fuel is now in limited supply, Some regular flights have been cancelled.
Will some miners shut down production? The Asian refiners are not able to produce diesel at the same supply levels and is affecting the whole area.
Gasoline prices have risen to the point that it is prohibitive to drive for some folks.
Aussie Digger hopes that his flight home is not cancelled. Aviation fuel shortage.
My trip is two months off and may not happen if this situation does not turn around.
China has blocked all exports of refined fuels.
Even if the Strait allows the free flow of existing tankers, the means of production in the Gulf is being degraded. We may have 6 months of a world wide supply shortage or until this is solved. Luckily the Northern Hemisphere is entering the Spring and Summer so heating is behind us but agriculture will suffer.
We can expect many industries in Asia to shut down due to lack of supply of petro feedstocks. Anything transported long distances may not arrive.
Starting to get serious.
I was considering Nutrien NTR.TO (Potash) but what if it can’t be shipped.