Oil isn't skyrocketing because a lot of countries are tapping their strategic reserves

[SamuelTheThird]

Which is a time-bound 'solution', and then prices will be greatly impacted later as they have to refill them

[gab13by13]

1. BS

[SamuelTheThird]

2. Well-articulated rebuttal

I mean you could try- oh I don't know- reading the news about all these countries releasing their reserves now...

[gab13by13]

7. crude is up 4% today after that announcement

The market looks at these releases as a sign of panic. These releases will cover 20 days of no oil going through Hormuz.

[ProfessorGAC]

3. Yes, There Are Such Countries

But, it's several, not many, though I'll admit there are mostly high consumption countries.
But, it only started a couple days ago, and I have a hard time believing the traders care about that when they're bidding futures' contracts.
I think it far more likely that there is still sufficient supply on the water or in tankard.
Then, there are major oil producing countries that are not affected by the middle east bottleneck, including the US which is the world's #1 producer.
Finally, crude prices did skyrocket. Even though they settled back down a bit, the price is still more than 30% higher than a week ago.
A 30% price increase in a week could fairly be described as "skyrocketing". So your premise seems flawed.

[SamuelTheThird]

4. I meant it didnt skyrocket after yesterday's ship attacks

The US isn't affected? Gas prices are up and will go up significantly more

[ProfessorGAC]

5. Reading For Comprehension Is A Skill

I never said the US wasn't affected. Don't know how the heck you got that interpretation.
I was talking, quite clearly, about petroleum production. The #1 oil producing description should have been a clue.
Plus, what part of "up >30% in a week" did you not understand.
The petro market is always irrational. The prices went up nearly 80% in a typical overreaction.
They have settled back down but still at significantly higher prices for all grades of crude.
Once pricing tries to reach its new equilibrium, it doesn't tend to react to every event. That, in & of itself, explains why prices shoot up, but gradually recede. (There are other factors, but that move toward equilibrium is a consistent lever.)
If you just wanted everyone to agree with your assessment, you should have said so.

[SamuelTheThird]

6. You were wrong, in any event

for example - IEA Will Launch Largest-Ever Oil Release From Global Strategic Reserves

[gab13by13]

8. And crude is up 4% today

Those releases are not going to cure the problem in the long run.

[SamuelTheThird]

9. Of course they won't cure it

But we had like a quick 13% jump in oil before it came down the other day. It's a temporary fix to mask a catastrophic problem

[LetMyPeopleVote]

10. Dozens of countries agreed to release 400 million barrels of oil. But it didn't bring down prices.

Petroleum prices rose in spite of the announcement, signaling real concerns about a more protracted conflict.

Link to tweet

The International Energy Agency said Wednesday that member countries had unanimously agreed to release 400 million barrels of oil from their reserves in a bid to ease prices that are soaring due to the Iran war.

Following the IEA announcement, U.S. crude oil prices briefly fell to lows of the day, on news of the potential for fresh supply. But they quickly climbed higher, passing $88 per barrel around midday.

The market moves Wednesday are a sign of real concerns about a more protracted conflict, despite President Donald Trump‘s assurances this week that the U.S.-Israeli war in Iran would be over soon.

The agency did not set out a definitive timeline for when the release — the largest ever by IEA nations — would begin. "The IEA Secretariat will provide further details of how this collective action will be implemented in due course," a statement said.....

Overall, "policy measures may have limited impact on oil prices unless safe passage through the Strait of Hormuz is assured," the analysts said, given how much oil is currently blocked from the global market in the region.

Historically, they said, "emergency releases have peaked around 1.4 million barrels per day." They added that it could be helpful but "that pace would not materially ease a 16 million barrels per day shortfall and would likely provide only initial relief."

IEA countries have executed emergency releases before, notably an estimated 180 million barrels in 2022, after Russia invaded Ukraine.