Why haven't gas prices gone down?
- Thread starter grampi
- Start date
4wd
$50 site donor 2026
Oil is being manipulated and should be much higher.
3 wars going on and everything is sunshine and roses…..
Get ready cause things are getting worse.
Bob McNally, founder of the research firm Rapidan Energy Group, about how the Iran war is disrupting oil supplies.
"But to your point, the strategic stocks are down to 1983 levels. We're almost done with those releases. Our refineries are already producing all they can. We're exporting just about all we can. So we are out of slack. There's no slack in the system, including in the U.S., which is going gangbusters. But this Hormuz problem, this disruption - the largest in history - is just too big of a problem for the United States to solve, you know, over the long term."
MCNALLY: Well, this is where you're not going to be happy, and they're not going to be happy with what I have to say. Unfortunately, even though the U.S. is the world's biggest oil producer, our consumers face the global oil price, and that price depends on global oil supply and demand. So a disruption anywhere leads to a price spike everywhere, including here. And I'm afraid to say, here we are at $4.10 gasoline, well over $5 on distillate. I'm afraid crude oil prices are headed higher, and with that, will the prices for - you know, we see at the pump and so forth. So I'm afraid as long as this conflict goes on, the trend is going to be up for prices.
RASCOE: Are you expecting to see record levels for gasoline prices?
MCNALLY: I would not rule that out. That is not my base case right now, but that is certainly coming into play 'cause here's the deal. Again, as I said, over the last four months, we've had these inventories that we drew down, and we had China going on a crash diet. Going forward, the price mechanism will have to do more of the balancing if we can't get those flows from Hormuz resuming. So, yes, entirely possible, Ayesha. Not my base case, but we're certainly headed in that direction.
"But to your point, the strategic stocks are down to 1983 levels. We're almost done with those releases. Our refineries are already producing all they can. We're exporting just about all we can. So we are out of slack. There's no slack in the system, including in the U.S., which is going gangbusters. But this Hormuz problem, this disruption - the largest in history - is just too big of a problem for the United States to solve, you know, over the long term."
MCNALLY: Well, this is where you're not going to be happy, and they're not going to be happy with what I have to say. Unfortunately, even though the U.S. is the world's biggest oil producer, our consumers face the global oil price, and that price depends on global oil supply and demand. So a disruption anywhere leads to a price spike everywhere, including here. And I'm afraid to say, here we are at $4.10 gasoline, well over $5 on distillate. I'm afraid crude oil prices are headed higher, and with that, will the prices for - you know, we see at the pump and so forth. So I'm afraid as long as this conflict goes on, the trend is going to be up for prices.
RASCOE: Are you expecting to see record levels for gasoline prices?
MCNALLY: I would not rule that out. That is not my base case right now, but that is certainly coming into play 'cause here's the deal. Again, as I said, over the last four months, we've had these inventories that we drew down, and we had China going on a crash diet. Going forward, the price mechanism will have to do more of the balancing if we can't get those flows from Hormuz resuming. So, yes, entirely possible, Ayesha. Not my base case, but we're certainly headed in that direction.
Last edited:
Massive Fire Erupts At World's Largest Oil Processing Plant In Saudi Arabia After Drone Attack
Last UpdatedJul 27, 2026, 22:50Abqaiq is the world’s largest crude oil stabilisation plant and processes between 5 and 7 per cent of global oil supply, making it a vital hub for international energy markets.
A massive fire broke out at Saudi Aramco’s Abqaiq refinery after drones struck the facility and the East-West Pumping Station in Saudi Arabia. NASA FIRMS satellite imagery confirmed extensive fire activity at the site, indicating significant damage to one of the world’s most important oil processing facilities.
Satellite images backs up reporting of damage at Abqaiq, Aramco’s key crude oil processing plant.
Last edited:
Owen Lucas
$100 Site Donor 2023
- Joined
- Sep 5, 2021
- Messages
- 4,951
Considering they have some really bad neighbors, wouldn't you think having a CWIS or some defense nearby is warranted?
IIRC Saudi Arabia makes $1B in oil revenue per day. How much would it cost to buy some basic defenses or even MANPADs to protect a multibillion $$$ refinery?
Have you seen the video of the Russian troops on the highway around Moscow trying to counter a drone using a MANPAD? It misses and keeps going to hit something else with a larger heat signature (burning oil tank farm). I dont know if our friends in KSA would fare much better in a 'developing situation'
Owen Lucas
$100 Site Donor 2023
- Joined
- Sep 5, 2021
- Messages
- 4,951
IDK if I would trust a Ruski MANPAD, maybe old stock, rushed production, or crappy engineering?
The Saudi's could buy our best stuff and defend that place better than any US base if they wanted to.
Maybe it's cheaper to hire Indian iron workers and pipe welders to fix the damage?
Last edited:
Iran strikes tankers under US escort in Hormuz strait
https://www.theguardian.com/world/2...us-escort-hormuz-strait-trump-gathers-cabinet
https://www.theguardian.com/world/2...us-escort-hormuz-strait-trump-gathers-cabinet
Similar threads
- Locked
- Locked