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Resulting Oil costs (and not politics)

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calibuck

calibuck

Too soon old, too late smart
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.
 
calibuck said:
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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We have the most and the best crude in the world but we're sitting on it.
 
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calibuck said:
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.
Click to expand...
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.
 
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Makes sense, guess wasn't looking at the macro effect. Next dumb question. If President Trump is going to utilize the strategic reserve of oil, to help lower gasoline prices, sems like the USA is going to enter into a microcosm of oil pricing. No clue what the oil will cost the processors, but sounds like will be well below world prices. On another front, find it humerous that the UK will be 'down' 40% on oil supplies, but won't commit forces to help keep the Strait open. Starting to believe Trump when he's stating that NATO will 'take' our protection, but won't help us when needed.
 
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