Everyone quotes the $100 oil. What reaches a bakery is diesel, which this episode says is climbing faster than crude because refined fuel is harder to get to market, and I pay it twice: in my van, and in every truck that brings me flour and butter.
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Clip transcript
- 0:00We're already feeling that friction. When news of the Houthi advances broke last week,
- 0:05oil prices spiked to more than $100 a barrel. Rachel says the timing of this takeover of
- 0:10the Strait of Bab el-Mendeb is proving to be critical. All of this is happening at a time
- 0:15where there was a growing supply deficit that had been building up that was only partly addressed by
- 0:22bypass and drawing down strategic petroleum reserves. It's also happening at a time where
- 0:28there are significant outages of refineries, which are meaning not only does the crude oil
- 0:34price go up, but the price for oil products like diesel and gasoline have gone up proportionally
- 0:42greater just because it's been harder to get refined products to market.
