As Gulf states continue to face Iranian fire, Bloomberg reports they are urging the president to seek an ‘off ramp’ from the war while asking allies to bolster air defenses and drone interception, including MAMBA systems now scarce due to shipments to Ukraine
I sense the sarcasm but onlookers should understand that this is not how the global oil market works. GCC is essential to maintain global demand and intersectional interests of many countries.
Wait, do supply interruptions not increase the price of oil?
It’s my understanding that when oil barrels reach a certain threshold (below $80 a barrel at one point), more expensive extraction methods can be unprofitable.
Canadian oil sands were supposedly at risk of jeopardization by an influx of cheaper crude from Venezuela (if that ever happens).
Sure this will benefit oil producers in the west writ large, and I’m not sure of the capacity of any refineries in North America to process Venezuelan crude, but Canada will not be able to offset losses in global oil production, so the cost of petroleum will increase regardless.
Yeah, that was my original point, that these shirt wars are profitable for oil producers who compete with the Middle East. It’s bad for pretty much everyone else though, for sure.