Cal88 said:
There is a buffer inventory of 1-2 months in the form or oil transiting through slow-moving tankers and local storage, but once that inventory is depleted, we're going to see big spikes in price. $150 by june is a reasonable expectation if traffic through Hormuz isn't restored. This is going to translate in gas prices in the $5-$7 range.
The only reason that Brent isn't already up at $175 or WTI at $150 is because of the East-West Pipeline out to the Red Sea, which I highlighted here in an earlier post. A contingency product of the Iran/Iran War.
That pipeline was only doing 700,000 bpd before the attack on Iran.
It's now at 7 million bpd.
Meanwhile, releasing oil out of our SPR has virtually done nothing.
I remember when Pac 10 Bear posted repeatedly about how DUMB a move this was by Biden at the beginning of the Ukraine War and how we were depleting our emergency supplies.
Funny, how he doesn't say a "peep" about the same release by Trump.
Just crickets.