Regular just dropped .20 to $4.50 here, Diesel is $4.70. Strange to see prices going down, as the middle East is brittle. At least we still have 1/2 of the reserves left….
Crude oil is a global commodity and as such, there are all sort of option contracts on this community (
calls and puts options, more or less that same as going long or short on common stocks). Conventional rationale would agree that when the M.E. seems to be up shyte creek, the price of crude ought to jump through the roof but when the opposite of that happens, it means that those with very, very, very serious sums of $ vested in these games, know things ahead of time which allows them to make corrections on their suspect bets! I have read articles about an impending recession in the 4th Q in addition to a glut of oil supplies on tankers, but this is my take:
Saudi Arabia will give us and more importantly the U.S (literally) free friggin oil as long as we take care of their Iran problem for them. The dispatching of the 2 career fleets toward the Med Sea and the bolstering of our naval presence in the Gulf is some sort of extra needed assurance to the KSA. I am going to use a dirty phrase in here but gotta love me some quid pro quo
I reserve the right to be totally wrong at all times!
ETA: The KSA plays games with us with all this OPEC price gouging cr*p, etc, buying weapons from the Chinese (
and Putin before his Ukraine f*ckery), yada, yada, but they know that we got the best stuff man, the very best of the best. They just like to flirt with that fugly mook
(let's name him: Xi Ping) to make us a bit jelly.