Rory Johnston

The firm you work for goes bankrupt and you don't have a job to drive to.

So you that, you know, there's a loss there as well.

But on top of this, we also have this third kind in this crisis, which I think is unique, which is just given how large.

the shortfall in supply has been and how slow these barrels typically move around the world.

We've had this floor drop out of supply in Asia, and you've had a lot of demand destruction per se of like unfulfillable demand.

But those individuals would pay more if they could get a barrel.

But it takes time.

And one of the weird things with this crisis so far is that it's it's moving at the speed of tweet, whereas oil tankers take a month and a half to transit around the world.

Yeah, so the important thing to remember here is that these ships, these tankers, take a long time to travel around the world.

They do not move especially fast in the scheme of things.

It depends on the region you're going, right?

It takes longer to go.

So of a tanker that left Hormuz the day before the war started,

It would take roughly three weeks for that ship to land in East Africa, four weeks to land in East Asia.

And again, I should say probably two to three weeks to land in India, five weeks to land in Europe, and then six weeks, seven weeks to land in the United States and Australia.

So to this point, I've been describing this as essentially an air pocket.

that normally this system, normally this trade on the water operates like a floating pipeline.

And when we talk about the market in millions of barrels a day, it's because the system must flow on a daily basis.

Refineries have to keep running on a daily basis.

They're like giant flowing chemistry sets.