US oil companies are LOVING the blockade. They’re not hampered at all by the blockade, but they can raise their prices right along with the market. They’re not spending a penny more, but are selling for much higher prices.
Because oil is an inelastic demand, even if the all the oil removed showed up tomorrow, the price likely won’t move much, because countries will be using the returned stock to fill up their strategic reserves.
I mean at all, that’s how things work, when there was the GPUs crisis, the prices spiked and then the GPUs never went back down to normal cuz “huh, they still pay us with those high prices? Nicee”
GPUs are still not going back down because the AI bubble is still inflating and our currency is increasingly worthless.
The idea of inelastic demand means that relief for oil prices comes much slower, because oil is required for everything. The price of GPUs would go down to equilibrium the instant more became available to the market, but oil will lag by a large margin.
It just means things won’t get better anytime soon.
Yep- no, it was like that before the AI bullshit too, the GPU demand increased from 2013 due to bitcoin miners until the offer couldn’t keep up anymore in 2017, the production caugh up the demand(and surpassed it too) in 2022/2023, but the prices after that were still higher than before the crisis because people would still buy the overpriced shit.
Im not really arguing the cause, becuase it’s abundantly clear its greedy corpos making life impossible at this point, just that oil is a special case of how badly we are about to be fucked, and why it wouldn’t go back down after the strait opens even if there wasn’t greedy corporate pigs doing what they do.
US oil companies are LOVING the blockade. They’re not hampered at all by the blockade, but they can raise their prices right along with the market. They’re not spending a penny more, but are selling for much higher prices.
And if the prices of the petroil come down, they will just keep it high
Because oil is an inelastic demand, even if the all the oil removed showed up tomorrow, the price likely won’t move much, because countries will be using the returned stock to fill up their strategic reserves.
I mean at all, that’s how things work, when there was the GPUs crisis, the prices spiked and then the GPUs never went back down to normal cuz “huh, they still pay us with those high prices? Nicee”
GPUs are still not going back down because the AI bubble is still inflating and our currency is increasingly worthless.
The idea of inelastic demand means that relief for oil prices comes much slower, because oil is required for everything. The price of GPUs would go down to equilibrium the instant more became available to the market, but oil will lag by a large margin.
It just means things won’t get better anytime soon.
Yep- no, it was like that before the AI bullshit too, the GPU demand increased from 2013 due to bitcoin miners until the offer couldn’t keep up anymore in 2017, the production caugh up the demand(and surpassed it too) in 2022/2023, but the prices after that were still higher than before the crisis because people would still buy the overpriced shit.
Accept that, capitalism works like this
Im not really arguing the cause, becuase it’s abundantly clear its greedy corpos making life impossible at this point, just that oil is a special case of how badly we are about to be fucked, and why it wouldn’t go back down after the strait opens even if there wasn’t greedy corporate pigs doing what they do.