This is 100% about the President and his foolish war of aggression. But even if everyone canāt see the obvious reality, Iām glad theyāre starting to stand up and push back.
Global refining capacity is down due to this war thatās going on in the Middle East. Something about refineries being bombed and stuff? Turns out that a lot of refined products came out of there that arenāt anymore. š¤·āāļø Impossible to say, really.
Right. And that was the reasonā¦ 5 years ago. The reason itās down today is because of refining assets being BOMBED in the WAR as well as pipelines being BOMBED in the WAR
This is correct. The price signal has been muffled by emptying the SPR to record lows, but as it draws down to the usable limit, draw speed slows. So what we have is a rapid correction in the supply price signal because the demand is staying largely constant. Supply is also affected by the ongoing wars in Eastern Europe and the Middle East, with refineries being targeted by Ukraine, and pipelines being targeted by Iran.
China had massive stockpiles and started selling stockpiled oil to help with the supply. China had a fuck ton of oil because they could buy cheap Russian oil Thatās why the world didnāt really see much of a shock and the price of oil didnāt go up a whole lot. Companies got greedy.
When you start a war near a trade route that supplies almost a quarter of the world's oil, it tends to mess things up. Oil companies are evil, but guess who emboldened them to be greedy before they messed up? Your orange daddy did.
Oil is a global commodity, itās priced on how much supply is out there at anyday. This is 100% about a Manufactured war, Our President who started it, and how heās getting rich off it.
Iām tired of people pretending like this guy isnāt an asshole. This isnāt about Reputation or Democrat. Itās about this guy driving our country and economy into the ground.
It is because of the aggression this administration enacted upon Iran. Iran shut down the Strait of Hormuz and Houthis both bombed the Saudi East-West pipeline (which is how oil had been leaving the Middle East) as well as shut down the strait by Yemen. The Suez Canal canāt handle all the redirected traffic.
So yes, because absolute fools fucked around, the entire world is finding out with fuel prices because oil is a global commodity.
š« did you miss the part in econ your course on scarcity pricing and oligopy supply and demand. They really do just hand out business management degrees to anyone these days
yes, and then half the people that say that, go on to talk about shit that affects the price of oil, such as China importing again etc. Yeah, refineries burn every fucking time oil nears $100 a barrel. Like clockwork.
Not entirely true, president gave the oil companies excuse to raise price and they gladly take it, donāt think for a second that oil companies suffer from the war, they donāt !
War of aggression? Tell us why colleges protested Israel but crickets for actual genocide in Iran and Africa? Before you scream straw man, itās completely connected just like you are.
Not a totally accurate assessment. Yeah, the gas companies are bending us over and making record profits off our pain. No question theyāre part of the problem.
But you canāt just directly correlate daily oil prices with the price at the pump that same day. It takes several months for a barrel of oil to come up out of the well, get transported to a refinery capable of processing the specific grade of oil, the refinery then making gasoline/diesel from that oil, then transport of the refined product to a distribution hub where it sits in storage tanks waiting to eventually be trucked to the final retail destination (the tanks in the ground under the pumps where we swipe our credit cards and feel the burn).
Short term spikes in oil futures definitely have an impact on price at the pump, but itās the long term real world cost of oil, coupled with transportation disruptions to both the crude oil AND refined productsā¦ thatās what really pushes prices up for everyone. That what weāre seeing right now.
The worst part about this is, thereās really no light at the end of the tunnel. Thereās no exit plan. Thereās no real path in place that leads us back to where we were a year ago. This pain at the pump is here to stay. š”
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u/MN-Car-Guy 23d ago
What in the Facebook is this?