Can someone explain to s simp like me that if the US uses aproximately 2% of the oil that comes through Hormuz why in the hell have goes prices shot to the moon? I get that it is a commodity but seems like a cartel price gouge on the highest order.

It makes complete sense if a hurricane takes out a domestic refinery but I am failing to see the correlation regarding the circumstances we are in....

1) Refined products come through the strait leading to a shortage in refined products
2) Oil leaving the straits go to worldwide refineries. These refineries might have to be idled if the interruption continues currently nations are using their " SPR " to keep refineries going
Eventually these refineries will need oil and that will mean Brent & WTI will go up in price
3) The Ukes are knocking out Russian capacity also leading to a shortage in refined products

I could be wrong but the price of diesel and Jet fuel seems to be telling us refined products are going to be the issue sooner than crude

When an American refiner is looking for a customer for its product, it sells to the highest bidder. If the highest bidder is in Europe because there is a shortage there, they will sell to the highest bidder. That then means the American market needs to compete with the European market on price. American refiners are not giving a home country discount.

and soon to be paying more for all products since higher gas prices drive up the price of delivery of all products.

A lot of our agriculture comes from California and Florida. These states have high energy costs.

We are net exporters of crude and refined products. But we are also a massive importer. These are global commodities, and we don't have protectionist pricing. We pay global market prices. Gasoline coming out of refineries on the ship channel can get sold to whoever will pay for it. It is cheaper to load it in a truck and drive it to Bucees in Katy than it is to load it on a ship and send it to the Netherlands. But you're still competing with them as a consumer for the same gallons of gas.

Oil is a global market.

China imports a lot of oil from Iran. Now that they can't, they have to go shopping for oil elsewhere. Which may include countries like Canada or Mexico that the US also buys oil from. Meaning that American companies now have to outbid China to import oil.

In global aggregate terms, supply is down while demand has stayed the same. This causes prices to go up.

Because they can.

If people could actually trust in President Trump's plan and not have TDS all the time, they'd know that this is a very small price to pay for the end goal

RINO Safari said:

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If people could actually trust in President Trump's plan and not have TDS all the time, they'd know that this is a very small price to pay for the end goal

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If paying 20 dollars more at the pump insurers safety at home from a country thats been screaming death to America since 1979 if not longer. Here President Trump, here's my extra 20 dollars, I wont be spending on coffee from Dutch Brothers.

The Ex Officio Director said:

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RINO Safari said:

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If people could actually trust in President Trump's plan and not have TDS all the time, they'd know that this is a very small price to pay for the end goal

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If paying 20 dollars more at the pump insurers safety at home from a country thats been screaming death to America since 1979 if not longer. Here President Trump, here's my extra 20 dollars, I wont be spending on coffee from Dutch Brothers.

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How about you pay $40 and I pay $0?

The Sun said:

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tysker said:

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The Ex Officio Director said:

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RINO Safari said:

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If people could actually trust in President Trump's plan and not have TDS all the time, they'd know that this is a very small price to pay for the end goal

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If paying 20 dollars more at the pump insurers safety at home from a country thats been screaming death to America since 1979 if not longer. Here President Trump, here's my extra 20 dollars, I wont be spending on coffee from Dutch Brothers.

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How about you pay $40 and I pay $0?

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Spoken like a true leftist.

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Ah so you think I 'should pay my fair share' or instead you will enforce higher prices or taxation to fund your projects? Clearly I'm the problem.

No Adults in the Room in 2.0. An absolute Charlie Foxtrot. My prayers to all the service men and women and their families. God help us all.

Ogre09 said:

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We are net exporters of crude and refined products. But we are also a massive importer. These are global commodities, and we don't have protectionist pricing. We pay global market prices. Gasoline coming out of refineries on the ship channel can get sold to whoever will pay for it. It is cheaper to load it in a truck and drive it to Bucees in Katy than it is to load it on a ship and send it to the Netherlands. But you're still competing with them as a consumer for the same gallons of gas.

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Bingo. We haven't "taken the oil" in Venezuela because the infrastructure is in tatters and we left the commies in charge.

Iran has hardliners left and a people no longer in the mood to rebel. The best we can do is barter to open the strait...but we're looking at stagflation in the face...as oil futures are likely to remain over $100/ba for another month or more.

It was obvious Trump was as addled as Biden in 2024. Should have nominated Nikki.

RINO Safari said:

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If people could actually trust in President Trump's plan and not have TDS all the time, they'd know that this is a very small price to pay for the end goal

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Whats the end goal?

redline248 said:

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I am also a dumb dumb in this regard, but my guess is b/c there will be higher global demand for US oil.

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Does that lower our access to our own oil? Seems like our supply should cover this country and whatever is left over should be sold at the global oil market price.

Russian finishing off the Ukraine would help us pay less at the pump....make it happen

Paying $5 gallon for gas makes State of Texas economy hummmmmmmmm

Now go enjoy filling up.

TexAgs91 said:

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redline248 said:

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I am also a dumb dumb in this regard, but my guess is b/c there will be higher global demand for US oil.

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Does that lower our access to our own oil? Seems like our supply should cover this country and whatever is left over should be sold at the global oil market price.

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"Our" oil? What's your share of "our own oil"?

Jeeper79 said:

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RINO Safari said:

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If people could actually trust in President Trump's plan and not have TDS all the time, they'd know that this is a very small price to pay for the end goal

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Whats the end goal?

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Even the people with the "plan" can't tell us that.

You seriously don't understand? Really?

TexAgs91 said:

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redline248 said:

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I am also a dumb dumb in this regard, but my guess is b/c there will be higher global demand for US oil.

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Does that lower our access to our own oil? Seems like our supply should cover this country and whatever is left over should be sold at the global oil market price.

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It's all sold at the global market price. That's why it's called the global market price.

AggieBaseball06 said:

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TexAgs91 said:

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redline248 said:

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I am also a dumb dumb in this regard, but my guess is b/c there will be higher global demand for US oil.

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Does that lower our access to our own oil? Seems like our supply should cover this country and whatever is left over should be sold at the global oil market price.

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It's all sold at the global market price. That's why it's called the global market price.

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There's other options.

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There's other options.

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Such as?

samurai_science said:

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Russian finishing off the Ukraine would help us pay less at the pump....make it happen

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Russia withdrawing from Ukraine would do the same... make it happen.

tysker said:

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The Ex Officio Director said:

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RINO Safari said:

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If people could actually trust in President Trump's plan and not have TDS all the time, they'd know that this is a very small price to pay for the end goal

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If paying 20 dollars more at the pump insurers safety at home from a country thats been screaming death to America since 1979 if not longer. Here President Trump, here's my extra 20 dollars, I wont be spending on coffee from Dutch Brothers.

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How about you pay $40 and I pay $0?

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That makes you a free rider that will get the long term benefit with no near term cost. Free markets prevent free riders from getting away with not beating their share.

RINO Safari said:

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If people could actually trust in President Trump's plan

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Almost every adult in America hopes and prays there is a good ending and a clean exit from this war. We're hoping it results in a new Iran with good leaders who reject what the prior Iranian mullah leaders did and take Iran forward down a much better path.

However only a small percentage of Americans think a good outcome like that is actually likely.

That isn't due to TDS. It is due to the Iraq and Afghanistan results and also from having observed Trump lie and exaggerate and make hundreds of empty promises and false claims during the past ten years.

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It was obvious Trump was as addled as Biden in 2024. Should have nominated Nikki.

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I'll take dumbest **** I've read today for $1000.

And you were fine until then but like Kimmel…

Garrelli 5000 said:

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Quote:

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It was obvious Trump was as addled as Biden in 2024. Should have nominated Nikki.

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I'll take dumbest **** I've read today for $1000.

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In other news, Trump addresses the media directly on a daily basis whilst Biden tries to remember which hole his pudding goes in.

Im Gipper said:

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Quote:

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There's other options.

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Such as?

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Competition.

US oil companies don't have the Straight of Hormuz to deal with and could sell oil cheaper.