Trump’s answer to an Iranian desire to reign over the Strait of Hormuz.

[toobfreak]

I see. International chess? Grandmaster level?

More like 3 dimensional chess with transitional quadrilateral-to-triangular tessellation.

 

[forkup]

I don't.

We export oil.

It's the refined products that can cause us issues. Learn the industry and global market.


Color me worried.


Yeah, you can measure my concern in angstroms (single digit).


I work in the industry. I am quite aware of how prices move.

I work in the industry too. And the fact that the U.S. exports oil doesn’t insulate it from price movements.

Oil is globally traded and priced off benchmarks like Brent Crude, so supply disruptions push prices up across the board, regardless of where the barrels are produced.

So yes, the U.S. is in a better position than pure importers. But it’s not immune. Higher global prices still feed through into domestic markets, including refined products.

The only way you avoid that entirely is by fully decoupling from global markets, which isn’t how the system currently works.

 

[HikerGuy83]

I work in the industry too. And the fact that the U.S. exports oil doesn’t insulate it from price movements.

What price movements are you talking about? Oil is a global commodity.

If Oil Prices go up, our exporters being more foreign dollars to us.

Domestic producers make more too.

And we pay at the pump.

But we are never going to be short oil.

Oil is globally traded and priced off benchmarks like Brent Crude, so supply disruptions push prices up across the board, regardless of where the barrels are produced.

Thank you captain obvious.

So yes, the U.S. is in a better position than pure importers. But it’s not immune. Higher global prices still feed through into domestic markets, including refined products.

Yes they do. But disruption of supply and potential shortages will be greater in the refined products coming to our shores. That would be true of derivative products as well.

The only way you avoid that entirely is by fully decoupling from global markets, which isn’t how the system currently works.

Correct. I am talking about supply, not price. We can't refine what we need. But we can produce all the oil we need (domestically). Disrupting refined products could cause us shortages and some pretty drastic grief.

 

[forkup]

What price movements are you talking about? Oil is a global commodity.

If Oil Prices go up, our exporters being more foreign dollars to us.

Domestic producers make more too.

And we pay at the pump.

But we are never going to be short oil.

Thank you captain obvious.

Yes they do. But disruption of supply and potential shortages will be greater in the refined products coming to our shores. That would be true of derivative products as well.


Correct. I am talking about supply, not price. We can't refine what we need. But we can produce all the oil we need (domestically). Disrupting refined products could cause us shortages and some pretty drastic grief.

It's the price increases not supply shortages that will have the political effects.

Prices rises that are exasterbated by constricting the markets. That's why you should care.