Asks how easy it is for both sides to target petroleum refineries in the Middle East.
Host
Francisco Blanch
It's relatively straightforward to target refineries, and this could be very damaging given the region's massive refining capacity (2-3 million barrels/day each for Saudi Arabia and Iran).
Asks about storage capacity filling up and how long it would take to bring production facilities back online if conflict lasts 4-5 weeks.
Host
Francisco Blanch
Crude oil production could restart in 1-2 weeks, but refining takes longer (several weeks to over a month). LNG facilities 1-2 months, and aluminum smelters could take several months to restart.
Interprets this as at least a 3-month period of elevated energy prices and asks about winners and losers from a trade perspective.
Host
Francisco Blanch
US benefits as net energy exporter (money moves from NY/CA to TX/OK/LA). Europe is vulnerable - historical energy spikes cause economic downturns. China is better prepared with large reserves.
Asks what policy tools presidents/Brussels have to manage oil prices.
Host
Francisco Blanch
Politicians can release strategic oil reserves (helps crude but not products), China is restricting fuel exports, US could take emergency steps, price caps (dangerous), waivers (Jones Act, sanctions).