My local gas price has gone from $2.50 to $4.30 since this started. I am more than willing to pay this for many months if doing so means an end to the Iranian regime, but most people don’t see it that way. Trump needs to bring this to a successful end sooner rather than later for the sake of a GOP majority in Congress next year. Otherwise we are well and truly screwed.
The largest part of the traffic that will be notionally protected through the Strait of Hormuz will be oil and gas shipments. If the USN can make this stick – and I see no reason why it cannot – then gas prices should be back to roughly pre-war levels well before the mid-terms.
I do not profess to understand the oil market. But at these prices, assuming its because crude or its refined products are finding better prices overseas than domestically (US) and that is having a secondary effect on our prices, what about profit? For domestic crude wouldn’t that add to oil company’s balance sheet enough to fund more exploration and the opening of new fields and new refineries? Or is this window too short for such long term investments? Do those who know think this window is too small and that anything done to improve the supply side will tank the market eventually? 2.50 / gal seems to be the new bottom AFAICT.
From what I saw from whats going on with shipping, the investment would need to be made in export facilities to be able to handle the volume of ships. But as soon as the strait is open, many of the new customers would transition back to the old route making that investment questionable in the long term.
I’m not sure what to make about the recent news claiming KSA cut off their air space over Trump taking action to run convoys through the strait. Our media isn’t reliable but the administration is opaque.
Maintaining the blockade while providing safe passage is something one would think KSA would be for, if the other news reported by the media is true that they were clamoring for Trump to wipe out Iran.
It could be there are real disagreements or it could be that our media is attacking Trump by framing progress in negotiations as a failure of implementing the convoys, which were successful.
My local gas price has gone from $2.50 to $4.30 since this started. I am more than willing to pay this for many months if doing so means an end to the Iranian regime, but most people don’t see it that way. Trump needs to bring this to a successful end sooner rather than later for the sake of a GOP majority in Congress next year. Otherwise we are well and truly screwed.
The largest part of the traffic that will be notionally protected through the Strait of Hormuz will be oil and gas shipments. If the USN can make this stick – and I see no reason why it cannot – then gas prices should be back to roughly pre-war levels well before the mid-terms.
I do not profess to understand the oil market. But at these prices, assuming its because crude or its refined products are finding better prices overseas than domestically (US) and that is having a secondary effect on our prices, what about profit? For domestic crude wouldn’t that add to oil company’s balance sheet enough to fund more exploration and the opening of new fields and new refineries? Or is this window too short for such long term investments? Do those who know think this window is too small and that anything done to improve the supply side will tank the market eventually? 2.50 / gal seems to be the new bottom AFAICT.
From what I saw from whats going on with shipping, the investment would need to be made in export facilities to be able to handle the volume of ships. But as soon as the strait is open, many of the new customers would transition back to the old route making that investment questionable in the long term.
I’m not sure what to make about the recent news claiming KSA cut off their air space over Trump taking action to run convoys through the strait. Our media isn’t reliable but the administration is opaque.
Maintaining the blockade while providing safe passage is something one would think KSA would be for, if the other news reported by the media is true that they were clamoring for Trump to wipe out Iran.
It could be there are real disagreements or it could be that our media is attacking Trump by framing progress in negotiations as a failure of implementing the convoys, which were successful.