Why Oil Prices Could Hit $200 a Barrel Soon
The real danger from the escalating Middle East crisis may not be fuel shortages — it may be the catastrophic price shock heading towards ordinary consumers as global oil reserves tighten and the Strait of Hormuz remains effectively blocked.
Most Kiwis are under some illusion that Luxon’s trip to Singapore has guaranteed us some sort of access to fuel.
Yes.
And no.
What has been guaranteed is our allotment of fuel in return for food, what isn’t being talked about is the price that fuel will end up costing us at the pump.
The real threat is price shock, not supply collapse
The reality is that Trump has screwed up so badly, we face a price destruction, not a limitation of supply.
Bernard Hickey makes the point…
Global oil reserves emptying out
Blockaded Strait of Hormuz seen closed until at least July; Oil industry warns global reserves run low by June & bottom of barrel in Sept
Oil analysts are warning1 the ongoing closure of the Strait of Hormuz means global oil reserves will be sucked down to an effective ‘bottom of the barrel’ by September, with increased stress and the risk of a spike towards $200/barrel from June
Luxon may have secured fuel — but at what cost?
…when Kiwis realise all Luxon has done is provided $6 a litre petrol, I’m not sure they will be feeling grateful especially when they are reminded that Luxon wanted to support the very war that is generating this!
Inflation is going to blow past 7 to 15 because of guessing.
Despite the increase in price there does not seem to be any less cars on the road.
This may change if the price goes up but more will buy EV s, bike, use public transport, walk more all thinks that Labour wanted to do but without large subsidies costing the country millions.
Hipkins seems disappointed there is no supply problems causing the government to impose control like Labour did during covid . Luxon should be admired for the business like manner he approached the problem and used our food producing strength to solve an oil supply guarantee.
I’m no fan of Luxon but he is at least trying to keep things afloat, fecklessly misguided as he is. A lesser evil than the response of some blatantly morally vacant leader overseas at the center of this chaos.
Trump was asked by a reporter to what extent Americans’ financial situation was motivating him to make a deal with Iran.
“Not even a little bit,” Trump replied, before elaborating: “I don’t think about Americans’ financial situation. I don’t think about anybody.”
I don’t think Luxon’s deal does guarantee petrol oil supply. All it does is commit Singapore not to place trade barriers on the export of oil, something they wouldn’t do anyway, and NZ to do the same on food exports, something NZ wouldn’t do anyway.
Luxon’s deal is all style, and no substance but it has fooled many.
If your prediction on much higher petrol prices plaves out then many of those who bought into the Luxon and media spin on the deal will feel conned.
Fun fact, Singapore refines Russian oil.
Anyone want to lodge an OIA about the Governments willingness to buy Russian oil?
Cause there’s fuck all other places we will obtain fuel from.
It’s not a perfect deal, but it’s still important to have access to fuel regardless the price. Yes, you can have price destruction of demand but then that pushes the price down again naturally. It’s far better we do have guaranteed access than none at all.
You are such a whiny malignant wanker, what should we have done? Told Singapore to fuck off? Grow up you worthless cunt.
Well someone woke up on the wrong side of the bed this morning. Need a hug?
Hey John, whats it like having a whiny, malignant, worthless cunt, wanker living inside your head rent free. Go back to whatever facebook algorithm you crawled out of.
Like we did to South Korea, by TEXT!
That action will come back to bite us when we least expect it but it will all be all Jacinda’s fault.
Dear John.
It seems that you’ve mistaken Martyn for someone in Government. He has zero responsibility for fixing this US / Israel clusterfuck.
And you’re very mistaken about which country reached out to the other. Hint, Singapore didn’t come to us, Luxon just tried to follow in the footsteps of Albo and couldn’t even reach a deal.
Maybe you’re very angry because you haven’t got a fucking clue about anything. That’s your fault you ignorant prick!
Or maybe, like Trevor, you’re angry because you believed total lies? Once again, your problem mate!
The Singapore deal was done prior to the Trump war . Long term planing pays off and shows how astute Luxon is
Hi Trevor.
You’ll be able to provide some proof for this right?
Because that’s such a bold claim it only makes you look even more fucking stupid.
Let me guess, Facebook told you it’s true.
Good to see colourful comments coming back to TDB. 🙂
The only person whose malignant and whiny and a bullshitting cunt is or useless fucken PM. John your on the wrong site fuck of to kiwibog or ZB
$6 a litre petrol is a good thing. Surely if we want the end of capitalism then the private car(s) in each household is the peak expression of capitalism (outside of the disgusting obsession with ensuites, i dont want to shit next to my bed,). We each drive our own car to work, we drop off the kids at school, we pop down to the shop for some milk. Let the wealthy middle class walk or take public transport.
@Peter.
Bro, all workers deserve an EV.
” EV’s For All ! “