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jsonstein@masto.deoan.org ("Jeff Sonstein") wrote:
"For six months, the economic effects of the war were muted by a lucky conspiracy of factors: fuel rationing across Asia, growing renewable capacity around the world, political jawboning of markets and the draining of global oil stockpiles, especially by China, whose cut to imports at the start of the war was so significant in this story that it’s been called the demonstration of a new geopolitical weapon. Even so, the gas price signal — that cartoonish standby of American politics — broke through. The price of gas has risen by 50 percent since February. Diesel is now at $6.50 a gallon.
In July, China’s imports surged back up — although not to prewar levels. The Houthis blew up the pipeline Saudi Arabia had been using to reroute oil west to the Red Sea, and the damage is forcing the country to cancel some of its shipments to Europe. The world’s oil reserves, many of which are already at historic lows, are rapidly approaching their floors. Last week, J.P. Morgan published a research note warning that it had no way to map the chaos of the fall to come. The election is little more than a month away."