Expect another surge in oil and gasoline prices.
Strait of Hormuz Stays Blocked
Bloomberg reports Kuwait Cuts Oil and Refining Output as Hormuz Stays Blocked
Kuwait, OPEC’s fifth-biggest producer, cut oil and refinery production following the near-halt of shipping traffic through the Strait of Hormuz, the latest in a string of output reductions hitting some of the world’s biggest energy producers.
The country produced about 2.57 million barrels a day of oil in January, according to data compiled by Bloomberg. The only route out for the supply is through the Strait of Hormuz. Saudi Arabia, the biggest producer in the region, has diverted some of its crude away from this route toward Yanbu in the Red Sea.
Kuwait had earlier begun lowering processing rates at its refineries because of the fuller tanks. The nation’s plant — Al-Zour, Mina Al-Ahmadi and Mina Abdullah — have a combined capacity of about 1.4 million barrels a day. Al-Zour is one of the biggest oil-processing facilities in the Middle East.
An Accurate Prophesy Minus WWIII
Contagion
It’s difficult keeping up with the news. I will be doing more frequent posts today.
The Trump administration is becoming unglued.
In case you missed it please note Lindsey Graham was a co-sponsor of this mess. For discussion please see How Senator Lindsey Graham Helped Convince Trump to Start War with Iran
If WWIII does result from this aren’t you glad Trump and Pete the moron are leading the charge? 🤣🤣🤣. God help us all! Time to brush up on your Mandarin.
We’ll be able to buy cheap BYD EV’s then!
I think the best analogy is how pilot-error plane crashes occur. (For good reference, check out pilot debrief.com)
He describes how pilots “get behind the aircraft”, meaning things are happening (too fast) and the pilot in command is failing to keep up.If panic sets in, it’s almost always too late.
Some crashes are survivable… Let’s hope for one of those.
may God give Trump the justice he deserves– and I don’t mean in the next life-I mean here and now. he has done so much harm to America and the entire world. it will probably continue as long as Putin and Xi just sit back doing next to nothing preaching adherence to International law. We know where Trump stands on International law–it doesn’t apply to him. He makes the rules.
It depends. In the 1990s A Vaticant prohecy (which directly talked about WW2 and how to prevent the cold war to turn into Ww3) indirectly hinted that Hitler was the mean of god to curse the world and the Germans (hence why he had incredible luck at surviving assinations attempts with bombs and pistols unexpectedly failing to work). Though most assassinations attempt where the work of individuals.
Also, he built the autobahn.
We should widen the Strait of Hormuz by removing land in the UAE and possibly Oman to widen the strait and make it less of a chokepoint. Of course, the countries who give up land for this end would be compensated by the US and other countries for their sacrifice.
An AI controlled robot workforce could do this fairly quickly, I believe.
Maybe we just drill a pipe across the Earth from WH new ballroom addition just directly to Qatar oil field. No need to compensate anybody, actually we can declare it is our oil and get it free. I am sure AI and robots can do it too 🙂
And on serious note I truly hope this was a joke. Always best to ask as there so much stupidity on internet. Hard to sometimes catch sarcasm.
No, he is not joking. He cannot see the human cost or the destruction such an endeavour will result in. Childhood monsters from bedtime stories never left them, they are always fearful that every sound is against them and their tribe.
Explain me what the “human cost or the destruction” would be?
It was not a joke.
Oh so you actually are retarded. You heard it here first folks.
Wow. You’ve really outdone yourself with that one. I won’t comment further… it’s just too perfect.
1-2 weeks of disruption in the Persian Gulf is all the global economy can stand before things start to fall apart. Each day brings more news of fuel shortages, refineries cutting production, and oil production being throttled. Same for LNG.
We are fortunate in the US as all we will see is higher prices. Asia and Europe will have to deal with shortages if this continues.
Truly tragic. I wish I could do something other than profit but its out of my hands. I did pick up some Korean stocks on the off chance this gets resolved quickly, their markets down 20% or so.
If not resolved quickly, will average my way down. So much opportunities out there.
You could donate those profits to people that are suffering.
Just sayin’.
Recommend the World Food Programme.
Life’s a beech and then you die!
There is and has been too much of these tear-jerk, life will be so hard stories over the years, which is what allowed Iran to become the PITA that it was.
The cost to finally destroy Iran’s nuclear programs, hopefully find their enriched uranium stores and eliminate their ability to export terrorism around the world is well worth it.
Hopefully, Trump takes on North Korea next while Ukraine finishes off Russia. That will just leave the USA and China and we can both work together for the good of the world.
You don’t know what the cost will be, and there is no way to know all that stuff was found.
You’re dividing zero by zero and coming up with infinity.
Most of the oil we refine is heavy oil from Canada and Venezuela isn’t it? If true, at least in the near term, why do we really need to worry at all?
Because our producers are gonna sell to the highest bidders…we have not stopped our producers from exporting….yet…gasoline will spike quite high here in the US
Nope. Not most. We refine 16-17 mbpd. 10 mbpd is US oil. 6-7 mbpd is imported oil; mostly from Canada.
We export 3-4 mbpd of light oil because our refineries cannot use it all. Refineries need a lot of that imported heavy oil.
Why do we need to worry? We don’t need to worry as much as the rest of the world. We will not suffer shortages of oil like the rest of the world will. Unless Canada cuts off our supply; which is unlikely.
However, oil, like all commodities, is priced by global supply and demand. If the price goes up all over the world, it also goes up here. So one effect we will see is higher prices for all things impacted by oil.
The second impact is economic. We are part of the global economy. If the global economy collapses, so will our economy. Just not as bad as some others.
Russia may supply to Asia .Europe will have a tough time.
Hi, mish. Following the 1973 oil shock, oil price did ×4 in a little over 6 months.
It was about 5 Millions barrels removed out of 56 millions at the time.
With 20% of the oil share being affected today, is it reasonable to expect oil at $500 a barrel?
[rotflol]! 🤣
“Kuwait, OPEC’s fifth-biggest producer…produced about 2.57 million barrels a day of oil in January…”
Brief pause to marvel at the substantial volume of material being extracted each day from beneath the territory of such a diminutive country!
Alright, back to the circus.
ISRAEL and America decided that… Might always makes them Right … but now Iran has decided that that historic Western War Script ….needs to be Revised….Oil is the bargaining chip.
Well the voters had a choice vote for the slight chance you may have to use the bathroom with a transgender or republican. . I how everyone remembers the republicans silence while trump does his thing means they support his policies.
This whole thing is two far right governments against another far rt gov.
or the wide open 10+million illegal aliens allowed in while stating the border was secure, don’t forget that domestic boondoggle choice. there were lots of other reasons. downplaying those other options paints a picture that minimizes the stark bad choices we are faced with these days from our binary-bad-options political climate.
on the bright side, based upon your post you should be happy this happened as your bad choice is likely to reoccupy Washington again, replacing the last bad option.
And as soon as dems are back in office the border will be wide open again so what have you really gained except high oil prices, bloody war on your hands, massive inflation, and possibly a great depression.
Notice how Trump and GOP haven’t passed any single immigration reform so we’ll be right back to square one in 1050 days when Trump’s term ends.
Eh im an independent. And more of an observer of the politics. When it comes to policies i dont care who has the right answer. Like mpo45v says below the gop is not passing any reform on immigration. They have been times when dems / rep have been in charge and anytime to compromise on the issue of reform. Deporting is just a show and a waste of money without the change in laws to back it up.
“An evil man will burn his own nation to the ground to rule over the ashes.” ~ Sun Tzu
Trump and his minions don’t care. Bibi and his zealots don’t care. We’re all subject to annihilation as long as they achieve their warped aims (I mistyped “war aims” but this seems more appropriate.)
As well articulated by our Secretary of Defense. He is getting way too excited about all the killing. Are we at war to kill people or to achieve a strategic goal? I am beginning to think it is to annihilate the Palestinians and Iranians. I might note in the midst of all this, Israel is continuing to take Palestinians lands on the West Bank.
Don’t forget Hegseth double-tapped survivors clinging to wreckage off Venezuela.
Also, this has turned into a religious war. So mass carpet bombings of Teheran next phase (like in WW2 Dresden and Leipzig, well knowing it was all civilians, refugees, elderly and kids being mass murdered by allied forces.)
Nothing like keeping up with the good old traditions.
You realize its the Iranian leaders who will be burning down their country to rule it’s ashes. Nothing will burn down in the USA.
Maybe this will finally pop the everything bubble.
Trump is Mrs O’Leary’s Cow
That’s an insult to the cow.
Are we winning yet?
WE are. Khamenei being dead is a big win, in and of itself. Eradicating their navy and most of their defenses are another major win. Effectively stopping Iran’s shipments of drones to Russia counts as a hug win and help for Ukraine also.
Trump’s peace through strength is the correct way forward!
But will it last?
If it doesn’t, then we will bomb them again.
Killing schoolgirls. What a huge win for the Epstein administration.
An 86 year-old man being dead is worth around nickel, but only because pennies no longer exist. Russia was scheduled to become self-sufficient in drone manufacturing by… 2026.
“Expect another surge in oil and gasoline prices.”
Excellent post. Was unaware, I am expecting a surge in profits next weeks.
Puts & Calls people, days like this is where all the money is made!
With 1st in 1st out accounting, selling from cheap inventory at todays inflated market price always looks good today. When the future market price goes down and you have to sell your product from inventory, at half what it cost you, things will look different.
Yup… trumpstien could taco at any moment, a few moments after he notifies his cronies so they can set up their trades.
This casino is badly rigged.