Tick Tock, Time Is Running Out: The Path To $200 Oil Laid Out

We are currently on a clear trajectory to $200+ oil, and possibly a lot higher. In some parts of the US, they are already experiencing the highest gasoline and diesel prices on record.

And, no, the US cannot be the swing supplier for the world, as many ignorant US officials keep claiming or suggesting.  The US is and will remain a net oil importer until and unless internal demand is killed off by higher prices.

However, the US is currently exporting oil on a net basis, meaning it is drawing down its own inventories to keep other countries supplied.  This cannot continue for much longer, and that’s the ticking clock in this story.

The US will either have to walk away from the Middle East or escalate dramatically in an attempt to save face and force open the Strait of Hormuz.  If the latter, I will be issuing my third and most urgent ALERT to subscribers during this conflict.

Iran has promised to strike the remaining oil export capabilities of the Persian Gulf states if it is attacked.  A move which would put us on the path to $300 or even $500 oil, and several localized shortages of an enormous array of products.