RE: Oil Price Is Going To 100$

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RE: Oil Price Is Going To 100$

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agmoore in Olio di Balena • 5 months ago

I know nothing about oil supplies or oil prices. I know what I read in the papers. However, another blogger, azircon, who is a geologist and works in the oil and gas industry, writes that countries have large oil reserves. He does not see a rational reason for a spike in prices. What am I to think? My gut tells me prices will go up, but my gut certainly does not serve me well when it comes to predicting world events, or prices.

Here are his two most recent blogs on the oil situation.

https://peakd.com/hive-180505/@azircon/strait-of-hormuz-its-importance-in-energy-transportation (three days ago)

https://peakd.com/hive-180505/@azircon/traffic-through-me (today)

5 months ago in Olio di Balena by agmoore

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steemychicken1 5 months ago

Yes, the countries have big reserves, but the price is determined by the supply, meaning how much they drill and sell. Right now, Iran is attacking oil drill sites in all of the Persian Gulf countries. The Strait of Hormuz is under a blockade, so ships with oil cannot pass, or they have to make a longer trip. For a ship to get insured, the price has gone 12X from a week ago. China and India buy its oil from Iran somewhere like 20-30%, and now Iran cannot supply that oil, so they will have to buy it from someone else, so less supply, higher prices. If the war ends soon, then the prices will stabilize and soon return to lower levels.

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