Crude oil at $2.30 / barrel
04-20-2020, 11:15 AM
#21
:-)
Joined APC: Feb 2007
Posts: 7,339
Originally Posted by HighWingingIt
Will this help save the airline industry??
04-20-2020, 11:19 AM
#22
Gets Weekends Off
Joined APC: Mar 2006
Position: guppy CA
Posts: 5,145
Originally Posted by Mesabah
Ummm no, Jet A manufactures will switch to diesel, and they won't switch back if a second wave of virus is predicted. This basically guarantees the airlines shutting down if the economy isn't reopened within a few weeks.
04-20-2020, 11:36 AM
#23
Gets Weekends Off
Joined APC: Jan 2014
Posts: 1,294
Originally Posted by FNGFO
So should I go ahead and pick up some shoulder pads, studded leather chaps and vest, a freshly repoed Raptor and cruise West Texas waiting for the apocalypse?
04-20-2020, 11:39 AM
#24
Nonsense Spewer
Joined APC: Jun 2015
Position: In the corner using a lampshade as a hat.
Posts: 523
Originally Posted by Andy
I thought that refiners produced x%age of multiple products and that tinkering with the ratios was not desirable. That's what the 321 crack spread is based on.
04-20-2020, 12:11 PM
#25
Prime Minister/Moderator
Joined APC: Jan 2006
Position: Engines Turn Or People Swim
Posts: 39,185
Originally Posted by Andy
I thought that refiners produced x%age of multiple products and that tinkering with the ratios was not desirable. That's what the 321 crack spread is based on.
There's some give and take that you can do, but it will hurt somewhere else in the process. Economics would drive exactly how you do it.
04-20-2020, 12:17 PM
#26
:-)
Joined APC: Feb 2007
Posts: 7,339
Originally Posted by Andy
I thought that refiners produced x%age of multiple products and that tinkering with the ratios was not desirable. That's what the 321 crack spread is based on.
04-20-2020, 12:27 PM
#27
Gets Weekends Off
Joined APC: Jan 2016
Posts: 529
Originally Posted by Mesabah
Ummm no, Jet A manufactures will switch to diesel, and they won't switch back if a second wave of virus is predicted. This basically guarantees the airlines shutting down if the economy isn't reopened within a few weeks.
04-20-2020, 12:34 PM
#28
:-)
Joined APC: Feb 2007
Posts: 7,339
Originally Posted by TimetoClimb
Correct me if I wrong but youre saying Airlines will be forced to shut down because there is no more jet A because it's too unprofitable?
04-20-2020, 12:42 PM
#29
Gets Weekends Off
Joined APC: Dec 2019
Posts: 472
Originally Posted by Mesabah
Yes, one of the unintended consequences of this situation we find ourselves in. It's not that it's just unprofitable, diesel is more critical as refineries are idled. There's going to be a significant lag time to revamp capacity, and it gets longer as the economy stays closed.
I dont follow..... All we need is one refinery producing it....and if the dont the price will go up. And to take care of the logistics surely arbitrage will do the heavy lifting to get it to market.
But....in this topsy turvey world if you asked me just 10hrs ago if I thout oil would be negative per barrel I would have looked at you like a lunatic.
Off to stare out the window now those flyin' pigs are a comin'.
04-20-2020, 12:59 PM
#30
:-)
Joined APC: Feb 2007
Posts: 7,339
Originally Posted by Tom Bradys Cat
So what your saying is that it becomes so uneconomical that refineries will stop producing Jet A?
I dont follow..... All we need is one refinery producing it....and if the dont the price will go up. And to take care of the logistics surely arbitrage will do the heavy lifting to get it to market.
But....in this topsy turvey world if you asked me just 10hrs ago if I thout oil would be negative per barrel I would have looked at you like a lunatic.
Off to stare out the window now those flyin' pigs are a comin'.
I dont follow..... All we need is one refinery producing it....and if the dont the price will go up. And to take care of the logistics surely arbitrage will do the heavy lifting to get it to market.
But....in this topsy turvey world if you asked me just 10hrs ago if I thout oil would be negative per barrel I would have looked at you like a lunatic.
Off to stare out the window now those flyin' pigs are a comin'.
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