Quote:
Originally Posted by Topspinmo
We didn’t depend on foreign oil till recently. 3% Russia non player but makes good talking BS point.
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The price of a barrel of oil in the US is dependent on the WORLD market for oil and the WORLD SUPPLY, which mostly depends on the Middle East oil, but also Russian oil, Ukrainian oil, and even countries like Norway which produces oil. Russia's unprovoked attack on the Ukraine caused the RISK FACTOR to the World's oil supply to skyrocket and took up the price of oil.
............Oil futures price equals world supply (not just the US supply) plus RISK to that SUPPLY. When Russia invaded the Ukraine there was that RISK factor plus a RISK factor that the war COULD (?) spread to become even a WORLD WAR. A WORLD WAR or even a spread involving Europe would affect the Middle East and oil would be DISRUPTED - like a BIG oil shortage.
............So part of the price that WE are paying for gasoline at the pump is a RISK premium caused by WORLD INSTABILITY.