Metaphorical
@hyp
Straight of Hormuz closing would benefit some other big oil producers. Hmmm.🤔
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Evan
@evangreenberg
Doesn’t it hurt China most?
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Metaphorical
@hyp
How so? Helps other exporters, hurts exporters that need to go through straight and importers broadly (one worldwide price that will go up due to reduced supply.)
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Evan
@evangreenberg
I thought I read rhat 90% of Iran oil goes to China or something like that
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Metaphorical
@hyp
Idk maybe short term but oil will flow wherever one is willing to pay.
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Metaphorical
@hyp
That’s why it’s called a commodity.
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Evan
@evangreenberg
I’m not sure I understand
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Metaphorical
@hyp
“a raw material or primary agricultural product that can be bought and sold, such as copper or coffee.” I essence, the supply is mostly interchangeable.
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Evan
@evangreenberg
But who controls the supply is not interchangeable
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Metaphorical
@hyp
There are many suppliers.
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Evan
@evangreenberg
Then why does one supplier going offline blow up the whole system? (this is more of a rhetorical question to show my confusion about the point you are trying to make in your last two casts. I was with you when you said China can just get Russian oil, but then who even needs Iranian oil then?)
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Metaphorical
@hyp
Basic economics. Supply and demand. Oil companies get supply lots of places. Do you know where it’s from when you fill up?
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Evan
@evangreenberg
According to what I read, only 5% of what the US fills up is from Iran (50% of what China fills up). I’m talking game theory as much as I’m talking economics. If China is the one getting majorly screwed by the closing and US isn’t, game theory says China would step in and stop it from closing
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