I can’t verify that exact claim, but as a chemist, it wouldn’t be surprising. Pesticides are mostly organic (carbon containing) compounds and oil is often used as feedstock.
So I could see some key starting material for the pesticide being diverted to make a fuel component.
Re:JP-7
by throwaway0a5e on Wednesday July 29, 2020 @09:19AM
(#23986302)
"According to one source, some raw material (possibly the solvent) used for the production of FLIT was similar to that used for LF-1A fuel for the Lockheed U-2 high altitude reconnaissance aircraft, causing a nationwide shortage of bug spray in 1955. Fuel LF-1A was produced by Shell.[6]"
https://en.wikipedia.org/wiki/FLIT
The citation is a book source and it's a book I don't own I can't vouch for the legitimacy.
It's discussed in Ben Rich's excellent memoir, Skunk Works.
https://www.google.com/books/edition/Skunk_Works/oL4bHPIt7XI...
According to Wikipedia, FLIT was a product and large consumer-facing brand of Standard Oil, not Shell.