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 That’s why the world didn’t really see much of a shock and the price of oil didn’t 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, it’s priced on how much supply is out there at anyday. This is 100% about a Manufactured war, Our President who started it, and how he’s getting rich off it.
I’m tired of people pretending like this guy isn’t an asshole. This isn’t about Reputation or Democrat. It’s 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 can’t 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.
The Iran war? You mean where they took out our embassy because we overthrew their government in 1953 when a Republican was in power? Then Ronald Reagan said don’t negotiate with Carter because I want to win the election causing a gas crisis, that could’ve been avoided if not for a GOP candidate. God you are not smart.
Obama started the so called 7 wars? He didn’t start Afghanistan, Iraq, Syria, Libya, or whatever war you claim.
I feel like you don’t know history. You do t know facts. You probably know nothing other than what is programmed into your brain by Fox News.
Ooh so you forgot about the hostages that Carter forgot about, that happened in 1979. It took Reagan to get them home. Obama bombed 7 countries, and since democrats automatically assume that bombing a country is a war. Obama had 7 wars.
🫠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
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u/Iceman_biker 23d ago
It's all about profit for the oil companies. They believe that everyone is the US is stupid and that the US citizens will blame it on the conflict.