Subtitles section Play video Print subtitles MARIA: WELCOME BACK. CRUDE OIL KEEPS ON MOVING WITH OIL UP SIX OF THE LAST EIGHT JOINING US RIGHT NOW IS TOM KLOZA. GOOD TO SEE YOU THIS MORNING. >> YEAH, I THINK SO. I MEAN, THE HOT QUARTER IS THIS QUARTER AND THE NEXT 40 OR 50 DAYS ARE THE WILD 40 OR 50 DAYS. IT COULD BE TUGGED UP BY HIGHER GAS LINE PRICES OR IT COULD GO UP WITH MORE RHETORIC INVOLVING IRAN. I MEAN, IF WE REALLY DO TRY TO SQUEEZE IRAN AND SQUEEZE A MILLION BARRELS A DAY OUT OF THE MARKET OR EVEN MORE, BASED ON SOME OF THE STATEMENTS, OIL PRICES ARE GOING TO GO HIGHER. I WOULDN'T BE SURPRISED TO SEE BRENT PRICES AROUND $85, AND THE U.S. CRUDE PROBABLY GET CLOSE TO THAT, ABOUT $80. BUT IT REALLY ALMOST NEEDS TO HAPPEN IN THIS QUARTER. WE'LL GET A BREAK AFTER THAT AND THEN 2019 WE START IT ALL AGAIN. MARIA: SOMEBODY MADE THE POINT THIS WEEKEND THAT SOMEONE THIS WEEKEND THAT OOMEONE THIS WEEKEND THAT ONEEONE THIS WEEKEND THAT ONE ONE THIS WEEKEND THAT ONE OFE THIS WEEKEND THAT ONE OF THE PEOPLE ARE WORRIED THE SANCTIONS ARE CUTTING BACK PRODUCTION IN LOTS OF OIL-GENERATING COUNTRIES. >> YEAH, WELL, THE SANCTIONS IN IF YOU GO BACK TO 2011 TO 2014, YOU HAD SANCTIONS ON IRAN AT THE END OF THAT PERIOD. THAT REMOVED MORE THAN A MILLION BARRELS A DAY OF CRUDE FROM THE BETWEEN $450 BILLION AND $480 BILLION FOR OUR GAT $480 BILLION FOR OUR GASOLINE THEN. STILL ABOUT $90 BILLION MORE THAN WE PAID IN 2016. SO IT IS EXPENSE SO IT IS EXPENSIVE AND PEOPLE ALMOST HAVE AN INTERNAL THERMOSTAT AS TO HOW MUCH THEY SPENT. >> ONE OF THE QUESTIONS I HAVE, WE SAW BEFORE WHEN THIS HAPPENED THERE WAS A CHANGE IN BEHAVIOR IN THE KINDS OF VEHICLES THAT PEOPLE WERE BUYING. WE'VE SEEN SOME OF OUR MANUFACTURERS ELIMINATE ALL CARS EXCEPT FOR SUVS. WHAT KIND OF IMPACT DO YOU THINK THIS WILL HAVE ON THE AUTO GOTTEN A BREAK RECENTLY. SOME OF THE STANDARDS THAT WERE RELAXED A LITTLE BIT AND PEOPLE ARE BUYING MORE SUVS THAN INSTRUCTION. COMMERCIAL WHERE THEY SHOW SOME GUY IN A BIG TRUCK DELIVERING A CALF OUT IN THE HINTERLANDS. YOU DON'T NECESSARILY NEED BIG TRUCKS AND BIG SUVS. I LIKE TO URGE PEOPLE NOT TO NECESSARILY LIVE LARGE WITH AN AUTOMOBILE BECAUSE I THINK IT'S THE OTHER ANSWER, MORE SUPPLY IS AN ANSWER BUT LESS DEMAND IS AN ANSWER AS WELL. AMERICAN AS SOON AS OIL GETS TO LOWER NUMBERS, THEY START BUYING BIG AGAIN AND THAT'S WHAT THE GET PEOPLE TO CHANGE THEIR BEHAVIOR UNLESS OIL IS -- YOU GOING TO GET TO $100, UNLESS WE ACTUALLY HAVE LIKE MISSILES FLYING IN THE PERSIAN GULF BUT $90 OIL COULD CHANGE IT. IT COULD ALSO CHANGE IF THINGS GET A LITTLE TOUGHER. THIS IS ABOUT AS GOOD AS IT GETS AS GLOBAL ECONOMIES GO. SO WE HAVE TO MEASURE EVERYTHING FROM HERE AS MAYBE THE HIGH STANDARD. >> TOM, REAL QUICK, SO MUCH OF THIS CONVERSATION OF LATE HAS BEEN ANY KIND OF A SHIFT IN DEMAND THAT COULD BE SOMETHING THAT MODERATES THE SKYROCKETING PRICE OF OIL. >> THE SHIFT IS PROBABLY IN THE UNITED STATES. WE'RE GETTING A LITTLE BIT FATIGUED WITH HIGHER PRICES PARTICULARLY, ALL OF THE COUNTRIES THAT ARE PRODUCING A A LITTLE REVVED UP. THAT IS SOMETHING TO WORRY ABOUT. IF YOU GET A SLOWDOWN IN GDP OR ANY KIND OF SORT OF A MALAISE OR A SLOG, THAT'S GOING TO KNOCK DEMAND DOWN TREMENDOUSLY. THIS MONTH, HOWEVER, I THINK WORLD USES 100 MILLION BARRELS A DAY OF CRUDE OIL. MARIA: BIG NUMBER.
B1 US oil crude weekend maria iran crude oil Economic impact of rising gas prices 120 8 tracy posted on 2018/07/10 More Share Save Report Video vocabulary