The Oil Squeeze Tightens

Paul Krugman: “So far, despite much higher oil prices, demand for oil has fallen by only a fraction of the loss of supply. Instead, the world economy is running by taking oil out of storage. Since there’s only so much oil in the tanks, this can’t go on. So if the Strait doesn’t reopen, prices will have to soar high enough — and inflict sufficient economic damage — to destroy another 11 or more million barrels a day of demand. That’s a lot.”

“But Trump is talking about his ballroom.”

“This may seem weird, but it makes sense if you view it psychologically. Trump is clearly dissociating. His fragile sense of self-worth depends on constantly believing that he’s a winner while others are losers. Now he’s faced with the reality that he, more or less single-handedly, led America to humiliating strategic defeat.”