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In reply to the discussion: If the Strait of Hormuz doesn't open soon, as seems likely, there will be a massive economic crash [View all]JT45242
(4,179 posts)30. Diesel is often made from mideastern crude while gasoline is made from US crude
That is a big driver of this problem.
Plus as the supply of the precursor crude is chiked off it becomes more difficult to catch up because yo uneed diesel to move the stuff that you use to make diesel and then to move the final product again.
It is one of the reasons why the Alaskan pipeline was so critical to the US economy, it made a cheap efficient way to move large amounts of crude oil without using diesel to do it.
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If the Strait of Hormuz doesn't open soon, as seems likely, there will be a massive economic crash [View all]
LymphocyteLover
Thursday
OP
there's definitely been some adaptation... but still a lot has been kept afloat by the reserves that are likely to run
LymphocyteLover
Thursday
#27
Absolutely. I totally agree on all those points. The stock market is particularly a mess IMO
LymphocyteLover
Thursday
#32
Yes, but the key is how long the strait stays closed and how quickly the reserves run out
LymphocyteLover
Thursday
#28
Diesel is often made from mideastern crude while gasoline is made from US crude
JT45242
Thursday
#30
Are America's strategic reserves at a 40 year low right before the summer season?
SamuelTheThird
Thursday
#19
Traders in Singapore, Beijing and Mumbai aren't duped by whatever Trump says
GreatGazoo
Thursday
#36
"futures price contracts probably isn't a good predictor of actual future prices" -- meaning spot prices, yes
GreatGazoo
Thursday
#42
No. For anyone holding a March contract at $63 their price in March was $63
GreatGazoo
Yesterday
#44
Appreciate your insight as I'm an admitted economic idiot. I can see where Exxon would be trying to "warn"
Cheezoholic
Thursday
#21
Since oil is sold as futures there is more profit when buyers panic about the future
GreatGazoo
Thursday
#37
Last week Exxon Mobil warned that oil inventories will fall to record low levels in coming weeks
LymphocyteLover
Thursday
#33
"one of the key reasons that Trump started this conflict was to increase energy prices"-- agree
LymphocyteLover
Thursday
#25