Quote:
Originally Posted by normalguy21
According to the mainstream news Russian oil made up 8% of what America was consuming .
If gas is lets use a nice round number like four dollars a gallon well then 8% of 4 dollars is 32 cents .
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The logic here is wrong. Let's go through this step by step.
1.) Putin fucks up and gets into a lose lose situation.
2.) US + Others Ban Russian oil imports.
3.) US + Others now have to replace the Russian oil they import.
4.) Price of oil increase
WORLDWIDE due to expected increase in demand.
5.) OPEC Increase oil production to meet demand. (Saudi Arabia and UAE still in limbo on their decisions on this)
6.) Prices level out, maybe even drop back down slightly.
Price of oil is set by demand, there is no magical 8% that floats into this. If step 5 can't be accomplished, gas prices have no cap as to how high they are expected to increase.
Countries are expecting this to speed up the shift to renewables even quicker than before, but this is all assuming WW3 doesn't kick off in the coming weeks/months.