How high could the oil price go? | The Economist

How high? Too high for people to ever drive again, hopefully. Its a bad system, start over.

It'll go high enough to force the transition to the alternatives which are rapidly becoming cheaper with volume.

The reason price has not risen appropriately yet is Scott Bessent has arranged paper oil futures to be strategically shorted.

Donnie commited this crime on humanity to pay his debt to exxon and conoco and many others

The solar radiation unmercifully roasting the oil tankers, and their crews, stuck in the straits of Hormuz, is exactly the same sun producing free clean unlimited electricity for the Chinese, from their solar collectors, in the Gobi Desert. Tell me who are the winners and who are the losers.

14% of world oil production, but almost 50 of all oil exports. 50% of sulphur production which affects commercial rubber manufacturing and phosphorous production. One third of all nitrogen based fertilizer just when the northern hemisphere is planting crops. People will starve. Many people will starve.

How can you talk about oil prices without pointing out that the Physical Price has diverged from the Futures (Paper) Price?

The real question is why are fuel prices so high?

Oil has been this high before, multiple times. Yet fuel prices were a lot lower.

Kinda sounds like someone is using the excuse to raise Consumer prices even though the input is not up all that much.

2026 - Let’s try and find out….

It can Go ALL the Way Up!!!!
No Top price in sight!!!!

Pretty clear trump will keep this war going as long as possible so he can get financial kickbacks from oil companies.

Some countries had the foresight to build lots of oil and fuel reserve tanks capacity.

It's not one oil price , there is dozen of price based on their grade and fields of origin
WTI is priced at Cushing Oklahoma where there is hardly any shortage
Opec basket is closer to reality but there is some serious delivery problem
the Singapore crude delivery of physical oil is the best indication so far and it's 20 to 30 dollars more

BUWAHAHA 😂
For years, been filling my F150 from rooftop solar, getting daily packages from Amazon Rivian electric vans, friends and neighbors driving electric Ford MachE, Chevy Equinox, Blazers, Lyriqs, Teslas, Ioniqs, niece driving a Silverado Ev, sister a Ford Escape Hybrid, and electric Class D Blue Bird buses driving by my house daily full of schoolkids.

No, I ain't in some East or West coast elitist enclave.

Just Rusty (Belt) Se Michigan 😅

What's a Hormuz? Haven't checked gas prices in a couple years. 😂

Plus, nothing unexpected:

1973-74 Oil crises
1979 Repeat
1980-1988 Iran - Iraq War
1990 Gulf War 1 Kuwait
2003 GW2 Iraq
2020-22 Global Pandemic
2026 GW3 Iran

Bob Lutz Explicitly stated his motivation for doing the Chevy Volt was independence from foreign oil & supply issues, not environmental altruism

Scary stuff.

Oil traders are all idiots. These four know the truth of what oil should be trading at...right.

The oil price can easily cross $200/bbl by June and I suspect $250 by July. It's going to rapidly get worse from here.

The gap between Spot and paper prices will close at the end of May. Then we'll have $220+/barrel & $10/gallon gas in USA by August as paper prices begin to match spot prices.

Please notice the blatant manipulation of the market and those who are making boocoo d’argent.

All done on purpose. Drive oil prices up. Food goes up. People starve. Depopulation .

There's PAPER OIL and PHYSICAL OIL. There ain't no more PHYSICAL OIL
Expect $20 per gallon of gas.

This crisis will last as long as DJT is president he will not and can not stop so it is here until January 2028 things may moderate some but there will never be a return to pre DJT administration

I want 3 a litre in Vancuntouver

1:12 "if it opens up everything will get back to normal quite quickly", everything I've heard and read, it won't be quickly, oil tankers take 2+ months to get to their destination. So....

$167-$460

Thank You TACO for the oil price!

“ Let Oil 🩸🛢️💸 go to “ $500.00 a Barrel for all I care 🤣 “

I can live with it

🥃🔥

Imo it will go on until he's out of office.

The record oil prices was $149/barrel in July, 2008, when there wasn’t a supply shock as there is today.

They blame China, Russia and Iran but the ones who will bring down the western society is America and Israel.

How high can it go? Well that is going to depend on WHERE... if oil hits $150+ oil producing countries, like the USA, will likely ban exports. There could be a $50+ price difference between regions if this happens.

It will become too expensive for commuters to drive to work, parking lots will become bazaars, 15 minute cities will arise out of necessity not just convenience, horse stables will arise again alongside carriage towns, cooking fuel will either be biodiesel or charcoal if not electric induction or ceramic coils, and agriculture will mostly be done by laborers with sickles not expensive tractors...

Oil SHOULD be high. It's a finite resource. Burning it causes climate chabge. Bring on the renewable energy century.

Demand for EVs in Australia has seen an uptick. Go figure...

The key point missed from the discussion was the effect on producers in the Gulf of running out of oil storage. If tankers don’t move the oil has to be stored, at some point that storage runs out and wells have to be shutdown. Restarting wells once this debacle is over is not a straight forward process of just turning a tap back on. Some wells might be damaged beyond commercial repair. This could prolong the oil price rise longer than just an end to the war. However eventually when oil exports get back to some normality we will likely see an attempt by producers to “catch up”, which will likely mean say a year or so after full production restarts the price of oil will decrease dramatically.

Some oil is getting out by truck over land routes towards the Med.

I have to be honest, I'm absolutely shocked about how equities markets are just shrugging this off. My brain really doesn't want to accept it.

Maybe the rally could wane, but the longer this current post-shock rally persists to ATHs the more convincing the case becomes that we just live in a schizophrenic world re valuations, utterly detached from reality.

And yes you can spend some time 1) scratching your head or 2) portending a crash, but there is the fact that you're losing out on serious gains by doing so. And like I said, the longer the "schizophrenic" reality persists the more that those 2 cases (ironically) seem delusional.

Iran only lasted 8 years during the Iran Iraq war

The UAE alone is the world's eighth-largest oil producer, and accounts for about 4% of the world's oil production. The UAE's exit from OPEC therefore allows the country to break free of current agreements and increase its total exports. The United Arab Emirates (UAE) has a major oil export pipeline that bypasses the Strait of Hormuz, allowing them to export crude directly to the Gulf of Oman.

Oil stocks seem to be the most no-brainer BUY of all-time but typically that's when the thing that makes zero sense happens.

One would think the greens would be happy. 20% less climate change.

Production has not gone up in other parts of the world. Russia is getting droned at key export terminals. The bandaid was sanctions relief on some crude at sea already in addition to dwindling reserves which is not sustainable and reserves eventually need to be replenished etc.

High as Elon when he was publishing our social security information…or high as Kash when he was slamming Moet with the US Jocks…or high as Pete H’s date after the first sip of her roofied wine cooler