Oil markets could be a month away from the moment of truth. Brace for a 'non-linear' price spike and panic buying

[Dulcinea]

(Fortune) Dire warnings about oil supplies are coming from everywhere lately as the Strait of Hormuz remains largely closed while President Donald Trump’s trip to China failed to produce a breakthrough to reopen the critical waterway.

While investors have been trading on hopes that the Iran ceasefire will remain intact, there is little sign that the oil trade will return to normal soon, forcing them to reckon with the reality of worsening shortages and an imminent tipping point ahead.

JPMorgan predicted that commercial oil inventories in the developed world could “approach operational stress levels” by early June. Saudi Aramco said global inventories of gasoline and jet fuel could reach “critically low levels” ahead of the summer.

The International Energy Agency warned the world is drawing down oil inventories at a record pace, with 164 million barrels released by governments and industry as of May 8.

https://finance.yahoo.com/sectors/energy/articles/oil-markets-could-month-away-190842717.html

[Norrrm]

1. Trump doubles down on his remark about not thinking about Americans' financial situation: 'That's a perfect statement'

Trump doubles down on his remark about not thinking about Americans' financial situation: 'That's a perfect statement'

https://www.democraticunderground.com/10143665967

and he was not going to start any wars either.

[bucolic_frolic]

2. Which goes dry first - local gas pumps or the Colorado River?

Is there a bet here? What's the over/under

[Ray Bruns]

3. "While investors have been trading on hopes that the Iran ceasefire will remain intact"

Therein lies the problem. These stupid bastards are still thinking Saddam Insomnia is going to pull a miracle out of his ass and it ain’t going to happen.

Anyone recommend an affordable Electric Vehicle?

[modrepub]

4. Repeat the Same Lie Over and Over

And many folks will start to believe it.

In fairytale land, the straight opens up and everything instantly returns back to the way it was before. In reality, oil ships move at the pace of a moderately paced bicycle ride so it takes weeks to months to get to ports. That’s not accounting for any structural damage to the oil and gas shipping ports or actual damage to oil tankers stuck in idle for months.

Another distraction in the market is the AI buildout and play. That’s been goosing the market for a year or more now. Add taxes reductions and there’s a lot of money supporteing stocks ATM.

As far as EVs, some of the original models are coming into the used market at reasonable prices. If you’re savvy, there are several free charging sites if you know where to look. But beware, electric prices are rising like gasoline and diesel are. Public charging is more expensive than charging at home. And fast charging on DC is hard on the battery. Getting solar helps offset costs a bit but can be pricey.

[Ray Bruns]

5. I'm not worried about the price of gas as I'm worried about no gas.

[modrepub]

6. I Agree

I’m old enough to remember what red flags tied to a broom stick at gas stations mean.

[orangecrush]

7. BOHICA

[patphil]

8. I'd forgotten that one.