Quackonomics Oil Panic Strait of Hormuz Crisis Looms

Oil's Up I'm Down Oh Boy Oh Boy Oh Boy

Well this is just ducky news ain't it? United Airlines CEO Scott Kirby that smart fella is planning for oil at $175 a barrel. $175 I tell ya. That's more than I make in a whole year of selling lemonade with Huey Dewey and Louie. He figures it'll stay above $100 through 2027. Now I'm no financial wizard like Scrooge McDuck but even I know that's a lot of clams.

Strait Situation Strait of Hormuz Headache

The Strait of Hormuz is causing a real kerfuffle. Apparently there's some trouble brewing with Iran and the U.S. military is getting involved. Trump's even saying Iran has 48 hours to reopen the Strait or else *KA BOOM*. Sounds like someone needs to learn to control his temper eh? Now this Strait is important because a whole lotta oil goes through it. Shut it down and everyone's gonna feel the pinch. If you want to learn more about another kind of shortage see this article on Cloud Storage Ain't Free No More Yo.

C Suite Blues Ducks Worry Too

The big bosses the C suite folks are worried stiff. They're trying to figure out what to do if this Strait stays closed. One energy CFO who's staying anonymous like a feathered secret agent says his company is planning for the worst. Reopening by March? Maybe mid year? Or... dun dun DUN... closed for the whole year? Talk about a quack tastrophe.

Tech Troubles Even Geeks Feel the Heat

Even the tech wizards are sweating. A tech sector CFO said that even though his company doesn't rely directly on oil the indirect impact is huge. Pressure in the Middle East booming economies like Saudi Arabia and Dubai... it all trickles down to the consumer. And when consumers tighten their belts businesses feel it. 'How long can this go on' he wonders. I'm wondering the same thing buddy.

No Policy Can Save Us or Can They

Strategic petroleum reserves like the ones in Japan and the U.S. might help a little but experts are saying it's not enough. One fella named Kilduff says "the numbers are just too big". Apparently there's a potential 10 to 12 million barrel per day deficit. 'There's no policy measure that can be taken' he says. Well that's just great. Guess I'll be walking everywhere from now on. Better start saving up on cloud storage now too.

Risk Premiums and Drowning Men Sounds Bad

Even if they sort this mess out things might not go back to normal. There's talk of an 'enhanced risk premium' staying in oil prices. Kilduff even says Iran might pull a 'drowning man syndrome' and take everyone down with them. Sounds like a recipe for a very bad day. He thinks $100 might be the new floor for oil. So buckle up folks. It's gonna be a bumpy ride. As my pal Goofy would say Gwarsh!