Thursday, July 26, 2018

Are We About To Face An Oil Price Shock?

WNU Editor: If a war breaks out with Iran .... yes .... get ready for an oil price shock. On a side note, here is an interesting read .... The 4 Key Chokepoints For Oil (


Mike Feldhake said...

Hmmm, how do you define a shock; 10-25%? Sure oil will go up but guess what! Since US is a major oil producer our oil companies will make a great profit because I think there will be a lower supply side issue here in the US.

Mike Feldhake said...

I should have used the word 'smaller' instead of 'lower'.

B.Poster said...

In the area I live near Houston, TX we were really hurt by lower oil prices. An increase in the price would actually help us.

If Iran shuts down the Strait of Hormuz for any length of time and if Yemeni forces block Saudi oil shipments, this creates opportunities for America. As a major oil producer now we should be able to capitalize on this. This may even work to increase American influence in the world.

What I find ironic is wars sometimes have the opposite effect of what was intended. Examples of this are the Iraq war, support for the Ukrainian Coup, support for Syrian rebels, and the war in Libya. These were supposed to advance democracy and expand liberty. They had the opposite effect all the way around.

Under the old model a massive increase in the price of oil would have hurt America. Any such price shock would be designed to do this. Instead it would actually benefit us.

Roger Smith said...

One thing to ponder, despite the fracking in this country, a significant amount of our refining capacity is geared towards heavier oils. And those we currently import. Years ago we used to refine a great amount of Venezuela's heavier grade crude for them.
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