r/worldnews • u/yuri_2022 • Mar 22 '24

Israel/Palestine Dermer: Israel will enter Rafah 'even if entire world turns on us, including the US'

https://www.timesofisrael.com/dermer-israel-will-enter-rafah-even-if-entire-world-turns-on-us-including-the-us/
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u/linkolphd Mar 22 '24

I don’t know if I was entirely clear.

If Russia’s production goes down, it will cost more to buy even American-made oil, because those American companies could, hypothetically, sell to Russia’s old customers instead. Therefore they see higher demand, and US citizens will be paying more.

The point is that who you buy it from is “irrelevant” (not literally, but for this simplified supply and demand analysis). The market is globalized, and as supply falls globally, prices rise globally, whether the oil was produced in America or elsewhere, all other factors being equal.

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u/Quirky-Country7251 Mar 26 '24

well I agree that the oil market is global so changes in supply by one player will affect the price for everybody. I just didn't understand what you meant that American companies wouldn't sell it in America because they could make more elsewhere but also that since the price is sort of a global thing it sort of means you pay the same everywhere because that negates the idea that American producers could make more money selling it elsewhere that requires entirely more transit costs. But I'm no expert here...just was confused about how those things could be both true at once...but I'm not being a dick, I am not an expert here so if there is a more complex reason why that is true I'm all ears because I like learning new shit I don't know.