The Countdown to a Major Oil Price Surge Has Begun (oilprice.com)

Like the runup to COVID, everyone is just shambling along pretending that nothing’s happening. Even if the strait is opened tomorrow, inventories will continue to fall for some time. This is going to be a serious crisis.

I am really not looking forward to whatever bullshit laws they try to force through during the crisis.

Meanwhile, the gas prices near me recently decreased.

This must be how Cassandra felt all the time.

For a long time I've been reading that the closure of Hormuz is going to constrain consumption soon. I understand the economic theory that reducing supply of an inelastic commodity greatly increases the price. The article says that inventories have insulated us from high prices so far. I am surprised by how large and effective those inventories have been. And I am surprised that futures prices are not higher. Can anyone here suggest explanations?

It will hold until midterms then hit the moon.