Oil Prices Jump Most on Record After Saudi Strike (opens in new tab)

We’re just entering into a cycle which will vastly reduce the importance of the oil market. If the price goes up more people switch irretrievably to electric vehicles, if the price goes down investment suffers. And every year the cost of batteries falls by 20%. BNP Paribas recently estimated that over 25 years oil will have to come down to $9 per barrel to compete with the cost of delivering the same amount of energy to vehicles using batteries and electricity. Oil is just going to become one chemical feedstock amongst many, important but no more so than other major commodities.

As long as there is cheap production in the Middle East and elsewhere, a large decrease in the demand for gas due to electric cars or any other reason will result in lower priced gas and thus more disruption during a price spike.

Supply and demand: lower demand, lower prices.

To use a more specific economic law, the price of a commodity is the cost of the marginal unit. Right now there is so much demand that the world uses all the $10 Saudi oil it can, all the Norwegian oil, all the fracked oil, but not all of the Canadian tar sands oil. That costs about $60 per barrel to extract and transport. Thus the current price.

It's coming, electric cars are going to murder oil profits.

Then you will be dependant on whatever country helps first world countries to make batteries or whatever is involved in electric cars.

This shitshow is actually widely supported and created by US and Europe, btw.

There is a commercialized version of iron-dome, baring the noninteresting name drone-dome [0]

And there are multitude of other players in this field* [1]

* examples are from Israel because I already know the names so the search is faster, surely there are multiple global providers of similar systems

[0] https://www.rafael.co.il/worlds/air-missile-defense/c-uas-co...

[1] https://convexum.com

If by 'drone' you mean 'cruise missile', sure: [1]. Of course the interest in this area are so intermingled that literally anyone could lie behind this, from the Saudis themselves (who need the oil price to go up to at least $80/barrel for their budget to stay in the black) to the Iranian regime (who are actively sponsoring opposition to the Saudi regime as well as many other regimes in the region) to the myriad of islamic militant groups which sprang out of the myriad of conflicts in the area.

[1] https://www.asiatimes.com/2019/09/article/saudi-oil-facility...

Re-engineer the plants to run on Victorian technology and have regular massive emp pulses to cover the facility? Let's face it, out of any industry this one has a tonne of cash to throw at solutions.

Only 5% of world oil supply is suspected to be affected but oil futures have gone up by 15%. This is the result of speculation that causes initial large spike and then subsequent oscillations to a stable value.

Given that there was a large jump and then a quick fall back to lower levels, a lot of it is probably speculators trying to make a quick buck, not actual worries that supply might be threatened.

Remember that the first time the oil price reached 100 USD it wasn't because of actual economic reasons, it was because a trader wanted to go down in history as the first person to buy a barrel for 100 USD.

Define "a problem".

At any point in time, prices will reflect not only the current supply and demand, but rather the future expected demand and supply.

Whenever the future supply is uncertain, there will be fluctuations.

It's not likely that there will even be a permanent reduction in capacity from this.

> Brent Crude is a major trading classification of sweet light crude oil that serves as a benchmark price for purchases of oil worldwide.

> London’s Brent futures leapt almost $12 in the seconds after the open, the most in dollar terms since they were launched in 1988.

> Prices have since pulled back about half of that initial surge of almost 20%

> Donald J. Trump @realDonaldTrump PLENTY OF OIL!

> WTI crude surged 15% at the weekly opening bell

> Prices have since pulled back around half

What you said is entirely meaningless. Someone is always making a lot of money. Any situation results in winners and losers.

And to gather support for a war against Iran.

The oil is burning, however, releasing all the CO2 at once.

The norm seems to be to have at least three months' worth of supplies, so the question is rather how quick can those sources return online?

If that is not poised to happen anytime soon, the prices should go up almost immediately.

So far I think we had a mixed response.

It would probably line the pockets of Venezuelan plutocrats rather than help Venezuelan people if it did have any affect.