Oil Tops $100/Barrel For First Time Since 2022

[Economy 52,844]

https://www.bbc.com/news/live/cz0g2yg3579t

 

Get ready for that inflation guys

 

 

[Economy 52,844]

Also not to scare anyone and it does depend how long this drags on and how long it lasts. But the 2008 financial crisis did also coincide with almost $150/barrel (almost $200/barrel inflation adjusted).

 

There may have been imbalances in debt and real estate lending but it usually takes a trigger to make a collapse happen. Im willing to bet the 2008 crisis would have been a more moderate recession/correction if extreme energy costs did not compound the pressure felt already

[Bronco 25,021]

With the way oil production works, the fact that any facilities have been hit or stopped production is concerning on the medium turn. 
It takes a lot to get them running from cold again. 

Even if the war ends sooner rather than later, the economic impact of this will be long lasting. 

[Economy 52,844]

1 minute ago, Bronco said:

With the way oil production works, the fact that any facilities have been hit or stopped production is concerning on the medium turn. 
It takes a lot to get them running from cold again. 

Even if the war ends sooner rather than later, the economic impact of this will be long lasting. 

Agreed tho it depends how long it lasts I think.

 

First of all most oil fields can be restarted within weeks though there is financial cost and sometimes a portion of the oil becomes unrecoverable

 

OPEC did have some spare capacity (albeit less than historical average). So if the amount damaged is less than the spare capacity, in theory they can bring production closer to 100% capacity to fill the gap until they repair the damages, so unless the damage is super severe, I dont think the production outage would last THAT long

 

Last factor too is we had a surplus for so long that there is a lot in storage. Right now oil is surging because a worst case scenario (prolonged supply outage) is being partly priced in. Should the conflict only last a few weeks and fears abate, the amount of surplus storage we have plus supplies coming back online should prevent prices from staying too high. Yes there will be a shipping delay from stuck ships but that is a temporary issue

 

But of course, thats if the conflict is short term. If it lasts longer, were absolutely cooked

[Lucas 31,114]

I was hesitating to buy some and make some profit... didn't. I see it even went up to 118$

[Lord Mayhem 3,427]

I think we are seeing a black swan event...if prices get to $200 or higher...the global economy is gonna crash 

[PartySick 172,495]

Gas prices here were just $2.50 and now they're up to $3.75

I just paid $60 to fill my goddamn car  

And Lord knows everything else will go up as the price to transport goods explodes.

[Morphine Prince 109,655]

I love being great again 

[Ashley 10,236]

Kicking myself for not filling my car a few days ago when it was $2.60 🥲

[FfFfFfFF 58,113]

And this is just the beginning.

[Morphine Prince 109,655]

They’re back down to $84. Trump apparently said the war will be over. 

He’s probably lying.