Not to get political. Likely the cost of gas will become structurally higher than the past. Higher gas prices will likely stay.

 

Well, since neither of you could figure out what I was saying, I'll spell it out for you (and it's not hilarity). The risk of a ship being fired upon, hitting a bridge or other structure, being sunk or damaged by storms, or having an incompetent or unattentive Captain is a big factor in expensive Maritime insurance for those ships...including tankers. The bridge disaster in Baltimore is an especially noted case.....liability for it is still being determined in the courts and other authorities.

 

(not to be political) what does this have to do with gas prices?

 

It's a Domino-Effect. The more expensive the insurance covering the tankers, the more it will cost to sail them, the more the more it costs to get the crude oil to the refineries, the more the refineries will have to charge the trucking-companies that operate the tanker-trucks (and the more diesel fuel will cost for those trucks), and the more it will cost the gas-station owner to have that gas delivered to the station....and the more the station owner will finally have to charge the public. It works that way for many other businesses and industries as well.

 

sounds like prices are gonna stay elevated as insurance is going to become risky going forward. structurally embedded into higher prices. referring to gas prices and not politics

 

Insurance will be a factor.....but what the Maritime insurance companies will charge in the future is up to them. I won't pretend to have a crystal ball.

 

Sam's gas $3.31. Down 5 pennies from yesterday.

 

Filled up yesterday for $5.56. 4 cents less than the weekend. Oddly though, there wasn't the usual massive 15-20 minute line at the Costco pumps. I had to wait for one car which was already halfway done when I pulled up.

 

Which begs the question.... what is the 'not too high' price for oil? Depending on who ya listen to, $70 is supposed to be the sweet spot to support exploration and extraction while not negatively impacting demand. According to the above chart, we were paying more than that 20 years ago ($74 not accounting for inflation which would be about an additional 65% over the period = equivalent of $122 20-years ago). And that was at a relative low in June 2006!

 

Correct. These prices are here to stay.

 

How risky in the future (and correspondoing Maritime insurance-pricing) it will be for tankers in the Strait will depend primarily on the political and mititary situation in the area....topics we can't discuss in detail here in CL.

 

We understood what you were saying, it just has nothing to do with the conversation we were having or the topic. The bridge in Baltimore being hit has nothing to do with gas prices whatsoever.

 

Correct - insurance rates industry wide don't go up because one cargo ship hit a bridge, and a "tall ship" got stuck under another. Those risks are static, which is not comparable to oil tankers having to navigate waters where an armed conflict is threatened--that risk varies.

 

the whole bridge thing in Baltimore wss
absurd lol.


anyways, not to get political….but back to gas prices….

 

5/13/26


6/2/26