𝗢𝗶𝗹 𝗰𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 𝗿𝗮𝗸𝗶𝗻𝗴 𝗶𝗻 𝗯𝗶𝗹𝗹𝗶𝗼𝗻𝘀 𝗺𝗼𝗿𝗲 𝗶𝗻 𝗽𝗿𝗼𝗳𝗶𝘁𝘀 𝗮𝘀 𝗴𝗮𝘀 𝗽𝗿𝗶𝗰𝗲𝘀 𝗿𝗶𝘀𝗲.

Steinbeck said:
Maybe 10%, not 20%, and Saudi oil was half of that; it is now exporting at the same level as before the war and has done so within a few days via pipelines and and ports not in the Strait.
Click to expand...

No, this claim is not accurate. It overstates the situation. Saudi Arabia has rerouted a substantial portion of its oil exports via the East-West Pipeline (also called the Petroline) to Red Sea ports like Yanbu, bypassing the Strait of Hormuz entirely.

However, exports have not returned to pre-war total levels using alternative routes and ports.

The East-West Pipeline’s exportable capacity tops out at around 5 million bpd. Pre-war Gulf (Hormuz) exports were higher than that, so the bypass could not fully replace them even at maximum throughput. There were also temporary disruptions (e.g., a drone strike on a pumping station in early April 2026 that cut flows by ~700,000 bpd.

They did not reach pre-war total export levels via those routes alone. It was closer to half (or a bit more in peak weeks), not “the same level.
 
Steinbeck said:
Maybe 10%, not 20%, and Saudi oil was half of that; it is now exporting at the same level as before the war and has done so within a few days via pipelines and and ports not in the Strait. I agree there is no real reason for such high prices globally, maybe a 3-4% spike at best.
Click to expand...
Saudi Arabia cannot export most of its oil through pipelines, so it will not return to pre-war levels as long as the Strait of Hormuz is closed. 20% of the worlds oil is behind the Strait of Hormuz, with maybe 5% being able to get around the Strait of Hormuz by pipeline, leaving 15% undelivered. And the pipelines are easy for drones to hit, so it is questionable how well that will work in a war.

Anyway, we will need 15% demand destruction for the market to work. How much higher does the price of oil have to be to convince 15% of oil consumption to end? China will use its huge reservoir of US Dollars to avoid having its people having to pay high prices, so China demand will not be destroyed.

Or put another way, if gasoline prices go up by 4%(number suggested by Steinbeck) will you refuse to use your car anymore? I think the magic number to create that level of demand destruction is about $10 a gallon of gasoline. That will get Americans to stop using their cars so much.

If we can get the Strait of Hormuz open, it might not go that high, but if not we are in real trouble.
 
Steinbeck said:
lol so stop blatantly stealing and robbing people. Kroger's isn't a charity.


I don't disagree. Our domestic supply and demand hasn't changed, so no reason to be screwing over the US economy just so a few producers can make a bit windfall.



Maybe 10%, not 20%, and Saudi oil was half of that; it is now exporting at the same level as before the war and has done so within a few days via pipelines and and ports not in the Strait. I agree there is no real reason for such high prices globally, maybe a 3-4% spike at best.
Click to expand...
Oil has been hovering around $100 for weeks. There is no reason for gasoline to be going up $.30/gallon this week.

Profits are through the roof.
 
Walt said:
Saudi Arabia cannot export most of its oil through pipelines, so it will not return to pre-war levels as long as the Strait of Hormuz is closed. 20% of the worlds oil is behind the Strait of Hormuz, with maybe 5% being able to get around the Strait of Hormuz by pipeline, leaving 15% undelivered. And the pipelines are easy for drones to hit, so it is questionable how well that will work in a war.

Anyway, we will need 15% demand destruction for the market to work. How much higher does the price of oil have to be to convince 15% of oil consumption to end? China will use its huge reservoir of US Dollars to avoid having its people having to pay high prices, so China demand will not be destroyed.

Or put another way, if gasoline prices go up by 4%(number suggested by Steinbeck) will you refuse to use your car anymore? I think the magic number to create that level of demand destruction is about $10 a gallon of gasoline. That will get Americans to stop using their cars so much.

If we can get the Strait of Hormuz open, it might not go that high, but if not we are in real trouble.
Click to expand...
trump is making a fortune on oil right now. What are the odds he removes his armada from the Strait anytime soon?
 
Teflon Don said:
Have you asked yourself why Kroger won't open a store in the "hood" as you call it? Is it because Kroger is fundamentally racist and wants to see people in the "hood" starve?

So you disagree with your fellow leftists who say it is because of Iran?

Kudos to you though. Haven't seen the "gouging" term thrown around in a while. You guys never disappoint. Always go back to your old standbys
Click to expand...
Go ahead. Post gas company profits for the last 2 months. I dare you.
 
Walt said:
I think the magic number to create that level of demand destruction is about $10 a gallon of gasoline. That will get Americans to stop using their cars so much.
Click to expand...

It is much lower. Empirical and analyst signals often point to U.S. retail averages around $4–$5/gal as a threshold where noticeable demand response and behavior changes accelerate; deeper, longer‑lasting demand destruction is associated with prolonged high crude prices (and sustained pump prices) and broader macro stress (recession).

Walt said:
If we can get the Strait of Hormuz open, it might not go that high, but if not we are in real trouble.
Click to expand...

America says the Strait is now named for Trump; he says he owns it.
 
Walt said:
I, atleast, feel bad about making money off of high oil prices. I did not want this to happen; I have never voted for trump in my life.
Click to expand...
If you can't beat em, join em. I don't have investments in oil companies. I do have investments in two pipeline companies that keep growing no matter what Wall St. numbers are, or oil prices are. You shouldn't feel bad about investing. We are pawns that have no control over what the thief in the White House does. Oil has been a pretty risky investment since Covid, but I'm sure those in the sector are thrilled right now.
 
countryboy said:
I'm old enough to remember when libs celebrated high gas prices. Brock Hussein Benito O'Bama wasn't that long ago.
Click to expand...
LOL. You're so old you are delusional. Everyone celebrated record production under Obama. He did away with a long standing regulation that denied export of unrefined crude oil.
We need to change our outlook in this nation. We pump light sweet crude. All of our refineries are set up to work with sour crude imported from elsewhere. We need to refine our own crude products.
 
Althea said:
LOL. You're so old you are delusional. Everyone celebrated record production under Obama. He did away with a long standing regulation that denied export of unrefined crude oil.
We need to change our outlook in this nation. We pump light sweet crude. All of our refineries are set up to work with sour crude imported from elsewhere. We need to refine our own crude products.
Click to expand...
The only one delusional is you. The only reason we haven't built new refineries in this country is because of leftist greeny weenies who sue every time. Give me a break already.
 
countryboy said:
The only one delusional is you. The only reason we haven't built new refineries in this country is because of leftist greeny weenies who sue every time. Give me a break already.
Click to expand...
LOL. You're lost. We don't need to 'build new refineries' .Before fracking, our policy was to import cheap overseas oil instead of pumping it here. Especially right after WW2 ended.
 
Althea said:
Go ahead. Post gas company profits for the last 2 months. I dare you.
Click to expand...
I would have to pull quarterly reports. I don't believe they report bi-monthly financials.

I am not saying that their profits are up. I am saying that their profits are cyclical.

Now why is it that Kroger won't build a grocery store in the "hood" as you call it? Why would you call it the "hood"? Seems to have a racial context to it. Did your KKK hat slip down?
 
Mahmoud Ahmadinejad said:
It is much lower. Empirical and analyst signals often point to U.S. retail averages around $4–$5/gal as a threshold where noticeable demand response and behavior changes accelerate; deeper, longer‑lasting demand destruction is associated with prolonged high crude prices (and sustained pump prices) and broader macro stress (recession).
Click to expand...
Maybe demand destruction begins at $4-$5, but the amount of demand destruction we need is going to be insanely high.

As for a recession, that would require more than two months of demand destruction. If trump can keep it down to one month, we will probably be able to avoid a recession from that cause.
 
Althea said:
If you can't beat em, join em. I don't have investments in oil companies. I do have investments in two pipeline companies that keep growing no matter what Wall St. numbers are, or oil prices are. You shouldn't feel bad about investing. We are pawns that have no control over what the thief in the White House does. Oil has been a pretty risky investment since Covid, but I'm sure those in the sector are thrilled right now.
Click to expand...
Yes and no. The oil companies are not thrilled to have lost so much of their infrastructure, or to have their industry wildly fluctuating based on the whims of a lunatic. That being said, trump really like natural resource extraction sectors, and is willing to destroy the rest of the economy to double their profits. That has to be good... For them... Not for the rest of us.
 
Mahmoud Ahmadinejad said:
No, this claim is not accurate. It overstates the situation. Saudi Arabia has rerouted a substantial portion of its oil exports via the East-West Pipeline (also called the Petroline) to Red Sea ports like Yanbu, bypassing the Strait of Hormuz entirely.

However, exports have not returned to pre-war total levels using alternative routes and ports.

The East-West Pipeline’s exportable capacity tops out at around 5 million bpd. Pre-war Gulf (Hormuz) exports were higher than that, so the bypass could not fully replace them even at maximum throughput. There were also temporary disruptions (e.g., a drone strike on a pumping station in early April 2026 that cut flows by ~700,000 bpd.

They did not reach pre-war total export levels via those routes alone. It was closer to half (or a bit more in peak weeks), not “the same level.
Click to expand...

Yawn.
 
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