Donald Trump has insisted Iran must “open up the Strait of Trump” and complained about not winning the Nobel Peace Prize in a meandering speech at the Future Investment Initiative Institute summit in Miami, Florida.
Donald Trump has insisted Iran must “open up the Strait of Trump” and complained about not winning the Nobel Peace Prize in a meandering speech at the Future Investment Initiative Institute summit in Miami, Florida.
This is getting bigger by the day.
Fuel shortages in SE Asia. This affects many industries the US gets products from.
China has suspended mineral shipments to the US and restricted fertilizer exports.
Russia is all but openly aiding Iran and likely instigating some of the actions.
Panic buying is happening in South America.
Diesel is over $10/gallon in some places.
Gas prices are hitting record highs in some places in the US.
And these effects are “rubber band” effects. They lag behind the actual impetus driving them.
This is going to get worse. A lot worse. These events are red flags. And if nation groups start taking sides over the conflict we are going to possibly see a far greater war and massive privation globally.
Isn’t the US a net exporter of oil? Why does this cause US gas prices to go up?
Adding to the other comments that point out opportunity to sell overseas is too tempting.
Also despite being a net exporter, some places are likely to import.
In the southeast, prices have gone up, but not as much as the West Coast. So much logistics to feed the pipelines that would be so tricky to get into ships, that is not worth doing it. So places where boats play a large role in oil logistics, well those places are subject to global market conditions more.
To put it more explicitly: If a US oil producer can sell a barrel to Indonesia for $150 a barrel, why would they sell it to California for $100?
You answered your own question.
We export the oil. The oil is bid on via a global market. That market sets the price of oil.
The companies selling oil and gas from the US sources have no loyalty to the US, they’re going to make money however it suits them.
Because oil and gas are both globally marketed.
And one reason US prices for gasoline are higher is because the US is a net exporter. If all US production stayed in the US, prices would be lower.
There’s different types of oil, that take different types of machinery to process, basically the oil from the US has to be exported to other refineries, because they don’t have the infrastructure to be able to use (or process) their own raw product.
Because of market rules. Supply has shot down but demand hasnt.
Because of profits.