Oil will be high for a while

[bakasabo]

Increased fuel price is least problem for vehicle owners. Switching to EV wont give a significant help, because the economy that is made from switching from paying for fuel to paying for electricity will be nullified by increased prices on products and services. Logistic companies and manufacturing suffer most increased fuel price. For example you saved couple hundreds EUR on fuel, but will pay about +30-50% more for everything you buy in stores. For example I was spending ~150 EUR monthly on fuel, but due to new prices I am spending +200 EUR. Previous month 1l of milk cost 0.99 EUR, today it is 1.49 EUR already. Additionally cost of EV > cost of petrol/diesel car. It will take years before your expenses on fuel-electricity balance.

Of course, the transition to electric vehicles—especially for logistics companies—is not a quick process. But those companies that think long-term, and seeing the recurring problems with oil, which has become hostage to geopolitical issues, will shift toward electric vehicles. Waiting for the next crisis and then losing business is not the best strategy.
And yes, unfortunately, logistics costs—for example, in the cost of food—are significant, which means that rising gasoline prices will trigger a chain reaction: rising oil prices → rising gasoline/diesel prices → rising service prices → rising food and other prices → reduced consumption of these goods → reduced and stagnant production of these goods → lower incomes and job losses → falling purchasing power → ....

I was only trying to say, that switching from car that runs on a fuel to EV, because oil prices when up today might not be the best way to save money on fuel. Switch to EV will pay back only in years, during which nobody can predict what would be prices on electricity. No one can guarantee, that next +5 years cost of electricity is going to stay on same level. Increasing oil prices will reduce fuel car cost, which means that gap between current petrol/diesel car vs EV is only going to be bigger. Also I dont think that such radical decisions are correct every time any crisis or price increase hits.

[Oasisman]

To be honest, I've been increasingly thinking about buying an inexpensive electric car myself. There's just one problem: there are no charging stations in the city. The infrastructure is completely nonexistent. This is only suitable for those living in private homes. For those living in apartment buildings, charging will be a real quest.

No matter what you think, petrol and diesel cars are not going to stop, or even banned by the government. Almost 90% of all vehicles in my country are dependent on petrol, so its price is constantly increasing. Your decision is very good but in present time there may be crisis of oil and fuel as well as electricity. The reason for saying this is that I am in a similar situation in my state right now. Many problems with fuel as well as electrical.

I guess there are about 90% of cars that run on diesel or gasoline globally, so the consumption will continue for many years, and yeah, this won't probably stop, because the current EVs have their own cons, especially for long-distance travel. This might change in the future, when it is adopted by most people, let's say 50% of the population. EVs seriously need very fast charging for it to become more convenient.
With the effect of the current oil crisis, companies that produces EVs might make their product more expensive.

[Mahiyammahi]

No one knows for how long this war can go on. It can be weeks or months. But a lot of people seem to think that once the war ends, everything will go back to normal. That is not the case. Oil prices are going up now and for every day that companies struggle to operate, the closer they are to bankruptcy. Maybe the big companies would be fine but even them are struggling. To expect that once the war ends, everything will go back to how it was before would be foolish. It will take a while for everything to go down low, if things were to bounce back to what we used to consider normal.

In reality, it is not too optimistic that everything will be as before once the war is over. In reality, the economy does not recover as easily and quickly as you think. The price of oil depends on the supply chain, business losses, everything. It has been seen that even if big companies somehow survive, they are under pressure, while the situation of small businessmen is very bad.

I think that once the war is over, all the problems will not be solved immediately. Yes, everything will be normal, but it will be step by step. How long do you think it will take for everything to be normal?

[justdimin]

From the perspective of the oil market, what is currently happening to the global economy can be compared to a complex surgical procedure in which a patient undergoes major surgery to remove, say, a tumor, and their blood pressure fluctuates during the operation. At that moment and for some time after the surgery, the body will predictably exhibit certain deviations from normal readings. But after rehabilitation, the global economy will return to a stable state.

This is a great way to explain, kudos mate. I agree, oil price will fluctuate for a while, but it will get normal and will be like as if nothing happened. Not going to be anytime soon, basically the surgery is still going in, we need to wait a while longer but eventually it will get better. We just need to give it some time so that we can do better.

I understand things are not looking that great at the moment because of the price of oil and gas prices increasing everywhere which will cause a high inflation, all of this will be a problem for a year or more, but we will be stable eventually. Obviously this sucks, we would not want this, we wish a better economy instead, but unfortunately we keep having these bad ones instead.

[Baki202]

To be honest, I've been increasingly thinking about buying an inexpensive electric car myself. There's just one problem: there are no charging stations in the city. The infrastructure is completely nonexistent. This is only suitable for those living in private homes. For those living in apartment buildings, charging will be a real quest.

No matter what you think, petrol and diesel cars are not going to stop, or even banned by the government. Almost 90% of all vehicles in my country are dependent on petrol, so its price is constantly increasing. Your decision is very good but in present time there may be crisis of oil and fuel as well as electricity. The reason for saying this is that I am in a similar situation in my state right now. Many problems with fuel as well as electrical.

I guess there are about 90% of cars that run on diesel or gasoline globally, so the consumption will continue for many years, and yeah, this won't probably stop, because the current EVs have their own cons, especially for long-distance travel. This might change in the future, when it is adopted by most people, let's say 50% of the population. EVs seriously need very fast charging for it to become more convenient.
With the effect of the current oil crisis, companies that produces EVs might make their product more expensive.

That's were the problem is there machines that can not run on electric and aside the running part how many people can actually afford this cars, the innovations of electric cars is good it safes the environment and a lot more but the question now is how many people can buy them because if 90%  of people are still using cars that run on petrol and diesel it shows that fuel is still going to stay longer and if it is a situation were more than 50% can afford electric cars then we won't be in the mess we are today because a lot of cars still rely on fuel to actually run that is the problem.

And that is why a lot of countries have there economy built on fuel starting from the fact that some countries dependent on fuel and they don't consider any other thing any more, and the hike in fuel price have affected a lot of things and now a lot of people are beginning to drop there cars because since the price have doubled the money you will spend have also doubled so most people will prefer to go for public transportations that is the only way you can cut down expenses this period.

[Danica22]

How long do you think it will take for everything to be normal?

Imo, this will depend on the scale of the war, its duration, and the consequences it causes.

If the war spread and draws many countries into it, or if it lasts for many year and the Hormuz sea route is blockaded for an extended period. Worse still, oil production facilities in the Middle East were largely destroyed. If that happen, it could take a decade for the economy to return to normal. Conversely, if the war had ended sooner, thing would have recovered more quickly.

[el kaka22]

Looking at the situation, the Hormoz strait is getting a bit more lax, not fully open yet like it used to be, but not as closed as it was a week or so before, we are getting some ships out here and there, most of them non-USA of course but still it's good that we are getting oil again back in to the world.

This is shown in price as well, there is a small dip that was followed by yet another increase, which I am assuming is because the dip was caused by the oil that passed, and then went back as if nothing happened after that. The more we pass through, the more it will go down but if it stops, it will go back up, that's the simple truth. I know this is going to take a while but this is the reality we have to live with.

[coupable]

When the military operation has officially started in the middle east, I read in some economic analytics that within the next three to four week, most of the country will run out of energy reserves. This problem isn't limited to just the third world countries, as it affects all countries including the big oilo productive countries. The main reason for this is a narrow-minded approach, the effects of which are particularly validated under Trump's administration. Many countries are using alternative methods to obtain fuel supplies at slightly lower prices like buying directly from Iran in exchange of goods or alternative payments including cryptocurrencies, or buying from traditional resources like Algeria and Russia.

[Swordsoffreedom]

Looking at the situation, the Hormoz strait is getting a bit more lax, not fully open yet like it used to be, but not as closed as it was a week or so before, we are getting some ships out here and there, most of them non-USA of course but still it's good that we are getting oil again back in to the world.

This is shown in price as well, there is a small dip that was followed by yet another increase, which I am assuming is because the dip was caused by the oil that passed, and then went back as if nothing happened after that. The more we pass through, the more it will go down but if it stops, it will go back up, that's the simple truth. I know this is going to take a while but this is the reality we have to live with.

Where did you get that information from? Because, according to the news I have read, almost no ships are allowed to pass through there except for Iranian ship. Even some Chinese ship have been forced to turn back when trying to pass through the Strait of Hormuz. Chinese ship are also unable to pass through this strait, I do not think any ship from any other country would be allowed to pass through it

The sudden drop in oil prices was due to news that Trump had postponed his plan to attack Iranian power plants, as well as information about ongoing negotiation



https://www.lloydslist.com/LL1156737/Cosco-containerships-abandon-attempt-to-exit-Middle-East-Gulf

[Oluwa-btc]

How long do you think it will take for everything to be normal?

Imo, this will depend on the scale of the war, its duration, and the consequences it causes.

If the war spread and draws many countries into it, or if it lasts for many year and the Hormuz sea route is blockaded for an extended period. Worse still, oil production facilities in the Middle East were largely destroyed. If that happen, it could take a decade for the economy to return to normal. Conversely, if the war had ended sooner, thing would have recovered more quickly.

The Iranian government are bot ready to end the war they didn't start and they've not forgiven the Us and Israel for attacking and killing all 176 children in that elementary school. Nato allies are refusing to join the war, they know this is a stupid move from Donald Trump and any plans to force open the strait with nuclear weapons will see Russia and China jumping in. Iranian government has said their demands for the US and their allies to stop attacking them now and in the future at the same they should also leave the middle east entirely. Sounds like a great idea.  They really need to leave for peace to reign.

[Danica22]

The Iranian government are bot ready to end the war they didn't start and they've not forgiven the Us and Israel for attacking and killing all 176 children in that elementary school. Nato allies are refusing to join the war, they know this is a stupid move from Donald Trump and any plans to force open the strait with nuclear weapons will see Russia and China jumping in. Iranian government has said their demands for the US and their allies to stop attacking them now and in the future at the same they should also leave the middle east entirely. Sounds like a great idea.  They really need to leave for peace to reign.

Among the peace proposal Iran has put forward, the one I like and support the most is the demand that the US close all military bases and withdraw all troops from West Asia. This alone would be enough to bring peace to the Middle East for a long time. However, the US would certainly not agree to this. Because if they agreed, it would mean they would completely lose their interests in the region, and their Petrodola empire would collapse

Both sides are merely making demand that benefit themselves, rather than genuinely proposing concessions or working towards peace. The war is probably far from over.

[barbara44]

The Iranian government are bot ready to end the war they didn't start and they've not forgiven the Us and Israel for attacking and killing all 176 children in that elementary school. Nato allies are refusing to join the war, they know this is a stupid move from Donald Trump and any plans to force open the strait with nuclear weapons will see Russia and China jumping in. Iranian government has said their demands for the US and their allies to stop attacking them now and in the future at the same they should also leave the middle east entirely. Sounds like a great idea.  They really need to leave for peace to reign.

Well to be fair if USA leaves now, and if the USA thinks they did hit the nuclear programs and stopped them or took them back, then they can stop and USA would still be the winner. In theory because they did kill the leader of them, and stopped their nuclear weapon program as well. If they did though, not sure if they did, like I still do not have a realistic level where they were even before all of this started.

Netanyahu has always said Iran was working on it, nothing new, but he said that for 30+ years, it is nothing new, so we can't really assume that it is not the same thing. We should be considering this to be different situation, what Israel says is not the truth, but Iran must have something, if we know that, then we can know when this would be over.

[DYOR+BTC]

Looking at the situation, the Hormoz strait is getting a bit more lax, not fully open yet like it used to be, but not as closed as it was a week or so before, we are getting some ships out here and there, most of them non-USA of course but still it's good that we are getting oil again back in to the world.

This is shown in price as well, there is a small dip that was followed by yet another increase, which I am assuming is because the dip was caused by the oil that passed, and then went back as if nothing happened after that. The more we pass through, the more it will go down but if it stops, it will go back up, that's the simple truth. I know this is going to take a while but this is the reality we have to live with.

Yes the drop in prices of products is a welcome development even as it have not fully been drop but at least things has start getting back to normal with hope that very soon all this will stop. Our prayer now should be, let the war not go beyond the way it is now as this few days have been like hell to innocent citizens thereby making it difficult for them to exercise there constitutional rights like freedom of movement.  The best of this is the cost of living will now be brought back to normal as it used to be before now.

[Nahl]

For poor countries improved their economy condition is really hard task that's why when this war stopped i am not sure the countries who included as poor will improved their condition rapidly even it took years for them to struggle so, that's why many economy expert will predict this war will have negative impact for almost the countries in the world and admitted or not oil is the most important element for economy world and we all know the centre of oil produce and distribution is belongs to middle east countries and when the tension of the countries from that place is high it will effect directly for economy world condition and as we can see currently oil prices is more volatile now compared before the war begin even if the war continue for weeks or even for months potentially oil will reach new peak soon and the situation is very worst for develop countries because these conditions will make the economy of those countries will be more struggle even the big impact is some countries will suffering oil crisis

[WatChe]

Yes the drop in prices of products is a welcome development even as it have not fully been drop but at least things has start getting back to normal with hope that very soon all this will stop. Our prayer now should be, let the war not go beyond the way it is now as this few days have been like hell to innocent citizens thereby making it difficult for them to exercise there constitutional rights like freedom of movement.  The best of this is the cost of living will now be brought back to normal as it used to be before now.

The ongoing war between USA and Iran is effecting price of Oil and now Russia has also announced ban on export of gasoline to meet domestic needs. We have to see what impact this news will create on already high oil prices. Its high time for all countries of the region to stand up and do necessary efforts to stop this war not only to lower oil prices but also avoid loss of precious human lives. If this war continuous then oil price will go further go up which will result in further increase in price of other things. It is in interest of the whole world that this war must be stopped at earliest.       

[TastyChillySauce00]

Looking at the situation, the Hormoz strait is getting a bit more lax, not fully open yet like it used to be, but not as closed as it was a week or so before, we are getting some ships out here and there, most of them non-USA of course but still it's good that we are getting oil again back in to the world.

This is shown in price as well, there is a small dip that was followed by yet another increase, which I am assuming is because the dip was caused by the oil that passed, and then went back as if nothing happened after that. The more we pass through, the more it will go down but if it stops, it will go back up, that's the simple truth. I know this is going to take a while but this is the reality we have to live with.

Where did you get that information from? Because, according to the news I have read, almost no ships are allowed to pass through there except for Iranian ship. Even some Chinese ship have been forced to turn back when trying to pass through the Strait of Hormuz. Chinese ship are also unable to pass through this strait, I do not think any ship from any other country would be allowed to pass through it

The sudden drop in oil prices was due to news that Trump had postponed his plan to attack Iranian power plants, as well as information about ongoing negotiation

I've recently read some news lately that some ships are actually being allowed to pass through by paying fees, and some other requirements. I don't know if that news is reliable.
Some countries are already starting to get their reserve empty, I wonder how the 400 million barrels of oil release by the International Energy Agency is going right now.

[fadhilz123]

Yes the drop in prices of products is a welcome development even as it have not fully been drop but at least things has start getting back to normal with hope that very soon all this will stop. Our prayer now should be, let the war not go beyond the way it is now as this few days have been like hell to innocent citizens thereby making it difficult for them to exercise there constitutional rights like freedom of movement.  The best of this is the cost of living will now be brought back to normal as it used to be before now.

As long as global oil trade routes remain unregulated, the likelihood of a decrease in the prices of products and goods frequently needed by the public is uncertain, as all of these are still influenced by oil. I also hope the war will end soon and allow the world to return to normal. However, recently, normalcy hasn't fully returned, so everyone is still concerned about rising prices, as the impact isn't limited to one or two countries, but rather to nearly everyone. And most people are currently closely monitoring conditions near the Middle East, as global oil trade continues to operate there for all countries.

[Iranus]

The ongoing war between USA and Iran is effecting price of Oil and now Russia has also announced ban on export of gasoline to meet domestic needs. We have to see what impact this news will create on already high oil prices. Its high time for all countries of the region to stand up and do necessary efforts to stop this war not only to lower oil prices but also avoid loss of precious human lives. If this war continuous then oil price will go further go up which will result in further increase in price of other things. It is in interest of the whole world that this war must be stopped at earliest.       

Not only has Russia stopped exporting gasoline, but its oil facilities are also under intense attack from Ukraine. This would exacerbate the problem if Russia also faced difficulties in exporting oil.

The US started the war, so if they want it to end, they need to make concessions first. Otherwise, it will be very difficult to end the war.

The US is only interested in its own interest. Because if they truly cared about the global interest, this senseless war would not have happened. Therefore, do not talk about global interests with the US, they do not care.

[Oluwa-btc]

Not only has Russia stopped exporting gasoline, but its oil facilities are also under intense attack from Ukraine. This would exacerbate the problem if Russia also faced difficulties in exporting oil.

The US started the war, so if they want it to end, they need to make concessions first. Otherwise, it will be very difficult to end the war.

The US is only interested in its own interest. Because if they truly cared about the global interest, this senseless war would not have happened. Therefore, do not talk about global interests with the US, they do not care.

That comedian posing as a president in Ukraine worries me. Not only has Russian refineries been attacked but they have blocked Hungary from having access to cheap Russian oil and gas. From the first of April, putin president of Russia has threatened to halt the export and sales of oil. He took his stupidity towards the Iranians and that was how part of his drone team sent to attack Iran was struked in a warehouse.

Ending the war without seeing the strait of Hormuz open, without having petrodollar payment through the Strait would make Donald Trump seem incompetent and weak. He neve thought Iranians will drag the war wages on them this long. Imperialistic nations do not hesitate to see the world burn and suffer for their own selfish reasons.

[summonerrk]

I recently came across an article claiming that "there are reports of billions of dollars being made by Iran and Russia from these oil prices. It's important to note that the United States is the largest oil producer in the world, followed by Saudi Arabia." However, I immediately thought that this was a manipulation of information, as I agree that the United States produces more oil than Russia by 30%, but the money goes to private individuals, while the government receives only 20%. In contrast, Russia receives the opposite. This is a significant source of revenue for the Russian budget. However, after the ports were damaged by drones, I heard that Russia's oil profits from the war in Iran were lost.