These are the same high electricity prices that Trump claimed he was going to control If asked I bet he would say they are not as high as they would have been without him. That seems to be his pattern for explaining failure lately.
Oil prices are high. Trump says they are not as high as he thought they would be or could be. This mess has gone on long enough that there is a growing supply shortage that will take months to work down. It will not happen over night even when it eventually starts... some day. Until they do I doubt seriously that prices will “fall like a rock”.
Instead of a reasonable offer for peace the Iranians have now expanded their intention of controlling the Strait of Hormuz. This peace deal is really working out well isn’t it?
If Iran had gotten a workable nuke then this would have happened anyway. But there would have been nothing anyone dared to do about it. See North Korea and their threats. Now some country like Russia, China, Pakistan or North Korea could still give Iran a nuke. That is why there has to be regime change.
There isn’t a supply shortage really. Just before the attack, there were complaints that oil companies were running out of storage spaces for the oil they had already bought but didn’t want to bring to market because oil prices were depressed to a point that bringing more oil onto market would cause them to sell the oil at prices lower than the futures prices they originally had bought at. The oil they bought at lower prices can now be refined and gas and diesel and other refinery products could be sold at much higher prices, due to the “shortages”.
The Attack gave them an excuse to raise crude prices under the guise of constrained supplies in the mideast due to war. American oil supplies have been ample to cover what the Straight of Hormuz can’t and we don’t buy much from the mideast anyway.
Also the summer driving season starts next week and oil patch folks hope to gouge Americans. It will only works so much until prices form driving, foods, vacations get so high and the middle class restrains purchase of luxury good, trips and services. If a sustained “Drive cott and resulting reduction of gas purchases of say 35 percent” could be implemented, what do you think would happen to fuel and petro chemical(motor oil, ect) prices? I suspect the oil companies would panic; they would have to drop prices and also the little game they’ve been playing about keeping “old oil purchase” hidden in multitude of idle oil tankers would be exposed...new oil needing to come to market competing with brimming oil tankers and depots full of oil that was already being kept from the market.
Something has to give...
They were talking about this oil in storage issue on Freeperville much of last year into this year ....now all of a sudden there is no oil??
They’ve been playing this trick with beef. Sure not as many cows in the USA but still adequate supplies, but the farmers have had issues with back up in the 4 major meat packers, lots ranchers trying to get the cattle to market yet many report back ups, with cattle languishing in the lots a lot longer than usual. The middlemen have been retarding,slowing the taking in of cattle, and slowed the processing of meat for sale and trying to get farmers to sell for less while the middlemen have been crying shortages on the whole sale side and claiming that they need to sell beef at higher prices on the retail side(then the supermarkets want their cut). Something’s gonna have to give!