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Originally Posted by Mako
The problem has nothing to do with supply, as the GFY political police instantly knee-jerk to.
The problem is that refiniery capacity is maxed out, there are literally millions of barrels of oil waiting to be refined, but we don't have the volume to do it because petro companies haven't invested in a new refinery in 22 years.
Saudi Arabia and other OPEC nations recently have begun cutting back daily bpd shipments because there's simply no point. No ability for refineries to process it. Blame the administration all you like, Clinton similarly let the oil companies operate unregulated for nearly a decade. Instead of building up to meet future needs, the petros simply gave the money back to shareholders as dividends in order to spike their share prices higher.
I love capitalism, best system in the world if you're not a lazy fuck, but when it comes to the petro companies it might be time for regulation.
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Mako you're right on target. Can't argue one bit, BUT the refinery situation was propped up by the Saudis and our guys. They knew damn well that no one would stand up because they stood to make a fortune down the road.
Your analysis is dead on beans accurate but there's more to play here.
Now watch what happens after this next hurricane. If it curves back into the gulf and picks up steam and fucks up the oil rigs you'll definitely see an over the $70 price real fast.