Molecules of oil sucked out of the ground last November, shipped over the Christmas weeks and converted into various grades of petroleum, diesel, aviation fuel, heating oil, tar and various other grades, all stored and paid for several weeks ago have suddenly become very expensive molecules of oil. The fuel in your car petrol tank and your heating oil storage tank, paid for at the pump or via your heating oil supplier won't be hit for additional cost because the industry hasn't worked out how to do that. Yet.
An oil industry expert pointed out that the war started by the United States and Israel three weeks ago that has tied up twenty percent of oil capacity for the last three weeks is to blame because, well, oil industries that typically make billions of dollars profit a quarter probably won't make all those profits next quarter. Well, not without raising the prices of oil molecules that have already been drilled, shipped, converted and paid for long before the war.
'There are bonuses at risk here,' pointed out an oil industry executive.
Prices are not expected to drop until long after the current crisis is over. Because future bonuses are also at risk.
Image credit: perchance.org
