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Posted
3 minutes ago, pfife said:

Nice gas prices 

so the strait has been closed for 3 months now, all that time asia has been surviving by drawing down huge inventories they had built up in anticipation of exactly an event like this. Now Trump surely believes he has the whole summer to squeeze Iran into a better deal, so he can act at playing bored, and still get a settlement in time for gas prices to be back under $3 by election day. But what nobody has bothered to tell him, or maybe nobody on his team has figured out, is even if the Strait opened tomorrow, those drawn down Asian inventories mean there is going be huge surge in purchasing once oil becomes available again, and that is going to keep the price high for months after the Strait re-opens.

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Posted
7 hours ago, gehringer_2 said:

so the strait has been closed for 3 months now, all that time asia has been surviving by drawing down huge inventories they had built up in anticipation of exactly an event like this. Now Trump surely believes he has the whole summer to squeeze Iran into a better deal, so he can act at playing bored, and still get a settlement in time for gas prices to be back under $3 by election day. But what nobody has bothered to tell him, or maybe nobody on his team has figured out, is even if the Strait opened tomorrow, those drawn down Asian inventories mean there is going be huge surge in purchasing once oil becomes available again, and that is going to keep the price high for months after the Strait re-opens.

The goodwill strategic reserve is really drawing down in Asia in particular because they don't have people mumbling about having to protect Israel in the pulpits.  

A little surprised how important the Gulf oil is to them when there is oil in the region.  The market is the market and makes up its own mind who drills and processes based on profitability I guess. 

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