It's never as simple as we assume to believe...
https://oilprice.com/Energy/Energy-General/The-Real-Reason-Gasoline-And-Diesel-Prices-Are-So-High.htmlI have a mate that works at an ESSO refinery here in Essex, UK. They closed a number of refineries at the start of 2020, even before covid lock downs. Production capacity dropped, but demand didn't.
OPEC+ have agreed to almost double crude oil output for June and July, but that only helps reduce cost if crude csn be refined into diesel and petrol.
There are so many consequences to this issue. Tech industries that depend on online purchases and deliveries have lost share values, delivery drivers are quiting en masse as most are self employed and fuel costs aren't being subsidised, even driving instructors are stopping their work as the cost of driving lessons are untenable for most young people, who form the majority of their customer base.
I fear that this is end of empire economics. Russia and Saudi are no longer looking west, they see their future in the east with China and India.
Biden and Johnson both tried to do deals with Saudi this year, they got a swift kick goodbye, and China got exclusive Saudi oil deals.
Roman, Greek, British, Dutch, French, and now US... All empires come to an end at some time. We are living through an end of Empire.
