3 ms·
Oil is fungible, so the cost will find an equilibrium regardless of source (excluding quality differences).
by greedo 7mo ago
Oil is fungible, so the cost will find an equilibrium regardless of source (excluding quality differences).
- hattmall 6mo agoWell that depends on a supply of tankers to transport the oil though. The tanker availability is already constrained. If hundreds are trapped in the strait and transit there is slowed you lose a lot of capacity. So the fungibility drops. It's possible we see demand destruction in areas that maintain their price due to export.