Well, first of all, oil price impacts production, that's true, the question here is "HOW BIG IS THE IMPACT?" You are talking about how the oil price itself is currently less than 25% of the impact if you break down each economic factor. You won't get to a point where it impacts the economy as a whole. We aren't talking about 200%+ impact; that's very far from that if you're only talking about a 5% or 10% surcharge. The last US recession is 2008, when the inflation rate was at ~10%. Currently, it's 3.6, half of what we had in 2021, post-COVID, and we weren't in a recession then....
And during the great recession of the 1920s, the inflation rate was around 20% before it hit. We are nowhere near that level of inflation. And even then, the economy didn't collapse.....
Not to mention, your entire argument is based on an assumption that a market WILL fall, which you don't have enough data or proof to show that such an assumption exists.
And I don't think you have enough knowledge in economics to be my teacher. I had 2 post graduate degrees in Economics........
huh? Do you know oil is transported by tanker, right? Those are NOT set to ONLY go to the Gulf and pick up their oil. It's not a "it's either gulf or bust: scenario
4 months is MORE THAN ENOUGH to divert a tanker from the Gulf to the other part of the world to keep the oil floating. And the US itself has increased the oil production by 3.6 million bbpd. That is beside the production increase between Canada, Norway and Russia) And as time goes by, that number can only go up, not down.
Well, I will then say the strawman fallacy is that you keep saying Brent applies to the world (again, they aren't applied to America and Russia)
Also, you are talking about a difference of less than $8 a barrel.
AND finally, I was talking in the US perspective.......Again, ONLY the US can end this war.......
That's actually reinforcing my point that the Gulf country alone does not have enough strength to protect the Gulf.......
Dude, you are arguing with the basic macroeconomic theory. Do you even understand the concept of price equilibrium?
And yes, if the price of wheat is going to increase by 300% tomorrow, then millions of people, mostly from Africa WILL die of starvation. Because they WON'T be able to afford them regardless of how vital it was to their survival. And the price equilibrium concept is to exactly used to prevent that, because there is ALWAYS a price that will match the demand to optimise profit, otherwise you will only see the price going up and up.
And no, demand drop-off can occur at ANY price level.
I am not your economics teacher, so I would suggest you go Google what a demand drop-off and price equilibrium are.
I just like to pick on him because he enjoys bringing up sleepy joe as much as Trump does
