Resulting Oil costs (and not politics)
- By ORD_Buckeye
- Open Discussion (Work-safe)
- 14 Replies
Because oil is a global commodity. US based production will naturally rise to the global price. And that price shift will be somewhat sticky and not immediately come down when (if) the straight opens back up since Gulf states are being forced to shut down wells and refineries, and those don't come back on line at the flip of a switch.Just curious, maybe someone can clear the fog from my eyes. OK, so we're at war with Iran. And gas prices go up. Even though USA is oil self-sufficient, how come does gas at the pump rise? Clearly what's already in the oil to gasoline pipelines was extracted at lower costs, (before this Iran thing), retailers are upping the prices. Anticipation of higher cost crude? Maybe, 'market prices'? Maybe, but seems more like the big oils are making a ton more money but raising gasoline prices (OF GAS IN THEIR HOLDING TANKS) before increased cost of crude hits the refineries. Recognize my econ degree was decades ago, but no one quesions, nor do we consumers balk at filling up at a buck or so more than the day before this war erupted.
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