$50 Billion Gone - Joe Blogs

[TexasTowelie]

The headlines suggest the crisis may be easing… but the reality is far more complicated.

After reports that the Strait of Hormuz had reopened, markets rallied and oil prices dropped sharply. But within hours, that optimism was called into question, with fresh developments indicating the situation is still highly unstable.

And while traders focus on the latest headlines, the real story is what’s already been lost.

Over the past 50 days, more than 500 million barrels of oil have been wiped from the global market — equivalent to weeks of global aviation demand, months of shipping fuel, and a significant portion of annual consumption across major economies.

At current prices, that’s around $50 billion gone.

In this video, I break down:

• What’s really happening in the Strait of Hormuz
• Why markets may have reacted too quickly
• The shocking scale of lost oil supply
• What the inventory data is telling us (including a key chart)
• And why the global economy is likely to feel the effects for months — or even years

Even if tensions ease, this isn’t something that simply resets overnight.

Higher energy costs, reduced supply, and ongoing uncertainty could continue to impact inflation, growth, and interest rates across the world.

So the key question is…

Is this crisis actually over — or are we just seeing a temporary pause?

[SWBTATTReg]

1. Some math ?s here...500 million barrels of oil is somehow equating $50 Billion dollars? I thought the last price of

a barrel of oil was pushing $100 a barrel, but lets be safe, and call it safe, let's call the recent price of oil at $20 a barrel. Now at $20 times 500 million barrels of oil is only $1 billion dollars. The numbers being played around w/ are messed up, but the numbers that the conversation is chatting around, are actually true, matches the numbers. So, the numbers being chatted about are good, but the display of the numbers (the $ amounts and quantities) aren't.

Perhaps someone is playing around w/ the numbers, and making a killing on oil futures, by gaming the figures and money?

[Wonder Why]

2. and that oil is still in tankers, in tanks or in the ground.

[SWBTATTReg]

3. Yes, you're right. I saw an recent article that they still hadn't gotten to the tankers stilling sitting offshore of

America's shorelines, so someone is buying this oil in advance, and then speculating on the values (up or down, depending upon what their trade is), and guess who's paying the bills? I thought in a purely capitalistic market, buyers and sellers are setting the prices, but here, the sellers and buyers are somewhat colluding together, aren't they? I guess if the oil is offshore, it's not subject to American jurisdiction / pricing regs?