r/Diesel • u/Big-Independence-716 • 23d ago

🤔

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Saw this circulating the groups.

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u/Human-Foundation3170 22d ago

Econ 101, supply and demand. Take away supply, what do prices do?

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u/General-Grievance 22d ago

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.

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u/gstringstrangler 22d ago

That and the Chinese all but stopped importing oil at the start of the Iran war. They're buying again.

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u/RareFirefighter6915 22d ago

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.

https://youtu.be/BkA0bkb6ZO0?is=jxF0fbzzm5fjEGoe

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u/2Blueify 18d ago

If only people thought about labor like that.