General (General discussion, talk about anything.)
When the pandemic hit, and almost overnight the demand for fuel ceased, there was a 'glut' of both unrefined crude oil, and refined petroleum products, such as petrol and diesel around the world, so production of crude oil was cut to almost zero, the 'glut' drove down prices, and consequently in the UK, petrol and diesel were selling at just over a pound a litre.
Eventually the situation stabilised and crude oil was produced at a rate to match demand, so and here is the problem, as vaccination rates and efficacy, started to finally beat the pandemic, and countries opened up, and folk who had amassed a few bob, but had not been able to spend it, started to spend again, this created a massive surge in demand for all products, but the problem then was that it was not only a matter of turning on the tap, and letting the crude oil flow, but turning on all the logistical, manufacturing and end point transportation of the supply train, to get petroleum based products, from under the desserts of the Middle East, and into the consumer markets, and there are hell of a lot of products made from crude oil, or requiring the energy of crude oil to be made.
In the oil fields, were there enough qualified staff available to resume pumping oil out of the oil wells. or had they been laid off, and had found other jobs ?
Where were the crude oil tankers? and when called up, did those tankers have crews available to resume transporting crude oil from the oil fields of the Middle East, to the refineries in the UK and elsewhere in the world, or had those crews been laid off, and had found other jobs ?
I could go on and on and on, but yoo get the point don't yoo, that switching the economies of the world back on, is not like flipping a light switch is it, although a big increase in demand was foreseen, the actual demand turned out to be far more than what was planned for, hence the shortages.
That demand will increase supply, and it is just a matter of time before supply catches up with demand, the lack of supply has and will continue to push up prices, and when demand equals, and then exceeds supply, which it will doo, then prices will fall.
It is an economic fact
And no Whupsy, it is not what folk voted for.
Even if we were still in the EU, with the closed borders, and quarantine
restrictions, which have been in place to control the pandemic, would EU HGV drivers have been able to carry on working over here, or would they had to return to their home country, and stay and work there ?
Replied: 14th Oct 2021 at 21:43