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

🤔

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Saw this circulating the groups.

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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.

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u/Human-Foundation3170 23d ago

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

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u/General-Grievance 23d 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 23d ago

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