With $110/ barrel not many OPEC countries will be in a hurry to get the Strait open except the countries that are blocked, thus one reason why the UAE dropped out of OPEC a couple of days ago and why US isn't getting any help. Reserves are down. Gasoline consumption is steady. Jobs market is steady. Consumer confidence actually inched up. That won't last long.
Eventually, high diesel prices will affect the economy. High jet fuel prices will affect travel and airlines. I don't see the government suspending gasoline taxes to bring down prices. Refining more ethanol gasoline won't help either.
During covid gasoline consumption went down 40% and prices were down 60%. Gasoline isn't a discretionary item like a new television or new vehicle or a family vacation.
Obviously the longer this problem lasts the more risk of economic contraction. GDP is around 2.5%. Even if the Strait is opened back up today it will still take months for Oil prices to get back to low 80's
Eventually, high diesel prices will affect the economy. High jet fuel prices will affect travel and airlines. I don't see the government suspending gasoline taxes to bring down prices. Refining more ethanol gasoline won't help either.
During covid gasoline consumption went down 40% and prices were down 60%. Gasoline isn't a discretionary item like a new television or new vehicle or a family vacation.
Obviously the longer this problem lasts the more risk of economic contraction. GDP is around 2.5%. Even if the Strait is opened back up today it will still take months for Oil prices to get back to low 80's
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