Drudge Retort: The Other Side of the News
Tuesday, August 04, 2026

I have covered the energy market's evolution through the Iran-Iraq War, from Chevron CEO Mike Wirth's early warnings about depleting buffers to Shell's CEO describing the diesel and gasoline squeeze that emerged as refineries pivoted to jet fuel. On July 31, ExxonMobil Chairman and CEO Darren Woods also added the most analytically precise observation I have heard from an oil executive. There is a disconnect between crude prices and pump prices.

More

Comments

Admin's note: Participants in this discussion must follow the site's moderation policy. Profanity will be filtered. Abusive conduct is not allowed.

More from the article ...

... And until that disconnect closes, Americans should not expect relief at the gas station, no matter what happens to WTI crude.

Pump prices are being established by the supply and demand of refined petroleum products, not crude.

"That's one of the reasons why we haven't seen crude rise as quickly as people have thought, or we didn't see product prices fall as crude prices came down." Woods said on CNBC's Squawk Box.

What Exxon's CEO actually said

Woods framed the disconnect with the authority of someone who has 35 years in the refining business, and the explanation deserves a careful read.

Historically, refineries always had excess supply, Woods said. That meant pump prices tracked crude prices closely, because crude was the dominant cost input and refining was never the binding constraint. When crude fell, gasoline fell. When crude rose, gasoline followed.

Woods continued to explain. "Pump prices are being established by the supply and demand of refined petroleum products, not crude."

The Iran war and the closure of the Strait of Hormuz disrupted Middle Eastern refined-product exports simultaneously with crude exports. Global refineries scrambled to fill the gap.

Shell's CEO described the same dynamic in my previous coverage: that refineries pivoted to maximum jet fuel production at the expense of diesel and gasoline. Now the diesel and gasoline shortfall shows in retail pump prices even as WTI crude has not risen proportionally. ...


#1 | Posted by LampLighter at 2026-08-04 12:50 PM | Reply

Everyone should watch this entirely: China quietly saved the world last month.

#2 | Posted by redlightrobot at 2026-08-04 02:26 PM | Reply

Meanwhile:

"Big Oil Is Reaping Rewards From the Chaos in Energy Markets"

www.wsj.com

#3 | Posted by ClownShack at 2026-08-04 02:43 PM | Reply

A half hour video?

Is it about China's crude oil consumption dropping significantly?

www.reddit.com

Good graph in that link ...

#4 | Posted by LampLighter at 2026-08-04 02:44 PM | Reply

#3:

I'm now reading Trading with the Enemy (1983, Charles Wigham).

Standard Oil (now Exxon) provided oil (and other critical resources) to the Third Reich, Fascist Italy, and Imperial Japan during the Second World War using subsidiaries and neutral countries.

The Canary Islands (Spain) processed Standard Oil petroleum from South America which then immediately fueled the Kriegsmarine U-Boats.

The chief American oligarch who frustrated Hans Morgenthau, Howard Ickes, and D/FBI J. Edgar Hoover, and who got away with collaborating with the enemy while making tons of money for Exxon during the Holocaust, along with "the Fraternity" of Ivy League WASP industry magnates, Walter C Teagle.

And ironically, a U-Boat would sink M/V Walter C. Teagle during the war.

#5 | Posted by C0RI0LANUS at 2026-08-04 03:04 PM | Reply | Newsworthy 1

A half hour video?
Is it about China's crude oil consumption dropping significantly?
www.reddit.com
Good graph in that link ...
#4 | Posted by LampLighter at 2026-08-04 02:44 PM

Essentially, yes. But it's quite well done, imo, so I offer you 30 minutes of excellent dissection, analysis and theory.

#6 | Posted by redlightrobot at 2026-08-04 04:16 PM | Reply

Lamp, for instance, the fact that the US has at best 60 days of petrolium reserve, whereas China appears to have at least four years and can continually process more internally whereas the US cannot.

The routing for Iran and Russia traded in yuan is discussed, but also has implications furthering warfare which he should make an entirely other 30 minute video on, imo.

#7 | Posted by redlightrobot at 2026-08-04 04:20 PM | Reply

C0RI0LANUS - Dick Cheney as both VP and CEO of Haliburton making deals with "axis of evil" for developing gas and oil seemed just obvious at the time. They simply don't care. Greed sacrifices good. Why else was "shock and awe" brought into Baghdad when their army surrendered seven miles outside of the city? The only ministry they protected was the oil ministry. Nothing else matters. Noone else matters. The looting of the museum breaks my heart. Rumsfeld dismissed it. We mean nothing to them. Tributes to their impact frustrate, regardless their historic value. Our enemies were always elected.

#8 | Posted by redlightrobot at 2026-08-04 04:31 PM | Reply | Newsworthy 1

#7

Detestable India purposefully increased oil imports from Russia to fuel their carnage against the Ukrainian people.

And the Kremlin is happily supplying her allies China and North Korea with plenty of oil and natural gas-- no Strait of Hormuz problem for any of them.

The US attacking Iran on Israel's behalf was certainly a well-thought out plan by the historically ignorant and inept Trumpf junta that is bankrupting the US economy while all US and int'l oil companies are making obscene profits at our expense.

......... Natural gas pipelines ............................ Oil pipelines

...

#9 | Posted by C0RI0LANUS at 2026-08-04 04:44 PM | Reply | Funny: 1

@#7 ... for instance, the fact that the US has at best 60 days of petrolium reserve, whereas China appears to have at least four years and can continually process more internally whereas the US cannot. ...

Yup. I've seen articles about that. Also that China actual usage of petroleum products dropped.

#10 | Posted by LampLighter at 2026-08-04 05:06 PM | Reply

# 8

Years ago I met a really good fellow who was one of the last Baghdadi Jews. I had met Iranian Jews before, but never an Iraqi one -- even in my deployments there.

"RI" looked more like a Circassian -- tall, big-boned, and pale -- and he was fluent in several languages and quick to smile.

One day "RI" told me that the Baghdadi colony suddenly became "Jews" after Saddam Hussein was toppled, not before.

Here's a Baghdadi Jew from a time long ago: i.guim.co.uk

TFDNihilist and Corky would approve.

#11 | Posted by C0RI0LANUS at 2026-08-04 05:07 PM | Reply

#9 | Posted by C0RI0LANUS at 2026-08-04 04:44 PM

Apparently, China could fuel any war, any time from start to end. Terrifying.

I imagine the over-unity and new energy sources are what they fear admitting exist the most unless it's metered in crypto.

Destabilization if it's introduced suddenly, but exploitable if slowly transitioned.

Would AI predict this replacement and plot expansion where more secure?

In a future without oil you might want a "super brain" to develop your next generation sources and devices.

In the current we are limited to expecting warfare prices forever but not because China wants an impoverished US as a market. Apparently, the US administration does.

#12 | Posted by redlightrobot at 2026-08-04 05:09 PM | Reply

#12

China's potential vulnerability as a superpower is similar to India's problem.

Unhappy elements within a large population pool.

India's caste system and poverty is a perennial problem and some analysts estimate that up to 25% of their territory is under Naxalite control or influence.

This is why both countries are "purifying" their nations, Sinification in China and Hinduization in India.

Poverty, corruption, and inequity are not long term formulae for success.

Look at all the corruption investigations underway in China.

China has suffered little casualtues since 2000, amassed weaponry, experience, and a fortune from all the stupid and reckless Western wars, like the Iranian quagmire we are in today thanks to Israel.

Moreover, Beijing has gained international experience and prestige as UN Peacekeepers and medical experts providing free healthcare to poor people in the Third World.

Dummkopf Trumpf dismantled USAID.

And the MSS is huge, posing tremendous problems for CIA, DIA, FBI, MI5, and MI6.

The greatest threat to China is internal dissent, not an international adversary, but they are quashing it mercilessly. See Hong Kong, Uighurs, Tibetans, Mongolians, visiting Taiwanese, and Manchus for more info.

#13 | Posted by C0RI0LANUS at 2026-08-04 05:37 PM | Reply

It's funny that the Oil Trust Fund Kid has no comment on this.

It's expected that all the other Trumpers have no comment on this.

#14 | Posted by snoofy at 2026-08-04 06:39 PM | Reply

Biden really ------ up.

#15 | Posted by visitor_ at 2026-08-05 02:22 AM | Reply

Maybe it wasn't a good idea for the disgusting orange chomo to shut down the Strait of Hormuz.

#16 | Posted by reinheitsgebot at 2026-08-05 03:12 AM | Reply

Is anyone going to even, at least, acknowledge how many refineries went off line during the Biden administration?

#17 | Posted by lfthndthrds at 2026-08-05 06:54 AM | Reply

Is anyone going to even, at least, acknowledge how many refineries went off line during the Biden administration?

#17 | Posted by lfthndthrds

Free the Strait of Hormuz and we'll have a long, long discussion of it.

I know you don't mean to be funny but you gave me my first laugh of the day.

#18 | Posted by Zed at 2026-08-05 07:19 AM | Reply

#17 | Posted by lfthndthrds

I wonder if there will be enough people muttering "Damn that Biden!" to save Trump in the midterms?

Better stick with Plan A. Steal the election and risk extended rebellion, armed and otherwise.

#19 | Posted by Zed at 2026-08-05 07:26 AM | Reply

What's coming?

Massive oil company profits and huge bonus checks for the CEOs.

Stop the insanity.

#20 | Posted by donnerboy at 2026-08-05 10:37 AM | Reply

It's expected that all the other Trumpers have no comment on this.
#14 | Posted by snoofy

Biden
#15 | Posted by visitor_

Biden
#17 | Posted by lfthndthrds

^
Perfect

#21 | Posted by snoofy at 2026-08-05 01:10 PM | Reply

I'd imagine if oil companies needed more refining capacity, they would build more refineries.

They seem to be doing just fine with what they have.

#22 | Posted by REDIAL at 2026-08-05 01:35 PM | Reply | Funny: 1

The Exxon CEO says it used to be a crude problem, but now its a refinery issue. (middle east now refines more as a percentage)

So what has America done in the last 20 years, it produces more and refines a little more, idk if thats a Trump issue or not, certainly not in California.

Imported refined fuels (2005 > 12% of consumption |2026 ~5.5% of consumption)

America is better prepared for Gulf oil disruptions than it was 20 years ago. The US might not even see any changes. But RoW certainly will, but Trump did warn about this to the Eurpoeans. But they don't seem to care.

China's potential vulnerability as a superpower is similar to India's problem.

As I have stated this is the primary purpose of the GulfWar to disrupt oil/gasoline China (major), and India (minor ) (resources). Secondly to take out any nuclear threat Iran might have.

You might not realize it but the US is in a Cold War with my homeland Chyna.

#23 | Posted by oneironaut at 2026-08-05 01:43 PM | Reply

I'd imagine if oil companies needed more refining capacity, they would build more refineries.

If the US was a free market. But no, regulations are the issue.

You can't build them or run them in California, infact they are leaving California.

#24 | Posted by oneironaut at 2026-08-05 01:44 PM | Reply

They seem to be doing just fine with what they have.

Same with meat packers ... restrict the meat packing, and you kill off the meat production.

This is the goal of environmentalism, in the 2000s, you don't need to stop X production, you stop X processing with regulations and government "oversight".

#25 | Posted by oneironaut at 2026-08-05 01:46 PM | Reply

Same with meat packers ...

Meat packers made almost $100 Billion in profits last quarter?

#26 | Posted by REDIAL at 2026-08-05 01:49 PM | Reply

Free the Strait of Hormuz and we'll have a long, long discussion of it.
I know you don't mean to be funny but you gave me my first laugh of the day.
#18 | Posted by Zed at 2026-08-05 07:19 AM | Reply | Flag

The loss of the refineries was going to be a problem sooner or later. It doesn't matter how many ships pass through the SoH if you can't refine it fast enough.

#27 | Posted by lfthndthrds at 2026-08-05 02:07 PM | Reply

I'd imagine if oil companies needed more refining capacity, they would build more refineries.
They seem to be doing just fine with what they have.

#22 | Posted by REDIAL at 2026-08-05 01:35 PM | Reply | Flag:

It seems that way until they burn through the inventory.

#28 | Posted by lfthndthrds at 2026-08-05 02:09 PM | Reply

It doesn't matter how many ships pass through the SoH if you can't refine it fast enough.

#27 | POSTED BY LFTHNDTHRDS

If you refine zero real, real fast what do you get?

#29 | Posted by Zed at 2026-08-05 02:13 PM | Reply

If the US was a free market. But no, regulations are the issue.
#24 | Posted by oneironaut

Such imagination!
There is no "Free Market" without "Regulation."
There is no one to enforce Contracts without Regulators.

#30 | Posted by snoofy at 2026-08-05 02:16 PM | Reply

The loss of the refineries was going to be a Profit Opportunity sooner or later.
#27 | Posted by lfthndthrds

^
Edited for Capitalism.

#31 | Posted by snoofy at 2026-08-05 02:24 PM | Reply

Ackchyually!

#32 | Posted by sitzkrieg at 2026-08-05 02:27 PM | Reply

California has specialty plants to feed specific industries, semiconductors, pharma, industrial gasses, polymers. That's what they get. They don't get new refineries, petrochemical complexes, etc, haven't for 30+ years. No point building either of those there when the Gulf Coast exists, state regs & real estate costs make it a poor idea that would take decades just to clear environmental reviews.

#33 | Posted by sitzkrieg at 2026-08-05 02:33 PM | Reply

"Big Oil Is Reaping Rewards From the Chaos in Energy Markets"

That's a feature of the program, not a bug.

#34 | Posted by Nixon at 2026-08-05 02:40 PM | Reply

You might not realize it but the US is in a Cold War with my homeland Chyna.
#23 | POSTED BY ONEIRONAUT

I think that's been widely accepted for quite a while now, and certainly more clearly perceived by the Chinese hierarchy than that in the current US regime. I wouldn't be surprised if Xi has to pinch himself every so often, just to make sure the barbarian he's dealing with is really as easily played as has proven to be the case this far. Perhaps he wonders about proceeding with caution, lest the spell guaranteeing the opponent's idiocy break.

#35 | Posted by Doc_Sarvis at 2026-08-05 02:45 PM | Reply

If the US was a free market. But no, regulations are the issue.

How many oil companies jumped on W's offer to build refineries on unused military bases with simplified regulations?

Oh yeah, none.

#36 | Posted by Nixon at 2026-08-05 02:49 PM | Reply

You might not realize it but the US is losing a Cold War with my homeland Chyna.
#23 | POSTED BY ONEIRONAUT

^
Edited for historical accuracy.

#37 | Posted by snoofy at 2026-08-05 02:55 PM | Reply

China, Illinois

#38 | Posted by ClownShack at 2026-08-05 02:57 PM | Reply

An Israeli troll finds it "FUNNY" that America's enemy is sending oil to China and North Korea and Russian oligarchs are making incredible profits while some Americans can't afford to buy toilet paper and others are selling plasma to make ends meet.

The American Red Cross is experiencing its second worst blood shortage in history.

This just tells you just what kind of "ally" and "friend" Israel is to the US.


Here comes another "FUNNY."

"Five...four...three...two...one."

#39 | Posted by C0RI0LANUS at 2026-08-05 03:03 PM | Reply

To date, Trump has cancelled $8 billion dollars in Federal subsidies for green energy projects. Projects that were backed by $68 billion in private funding. That's $76 billion worth of new energy that America won't be getting.

If you think Trump is trying to bring more energy resources to Americans, you're incurably stupid.

LftHndThrds, do you think Trump is trying to bring more energy resources to Americans?

#40 | Posted by snoofy at 2026-08-05 03:05 PM | Reply

They won't build it over a 11% subsidy? Sounds like a bad business to get into.

#41 | Posted by sitzkrieg at 2026-08-05 04:07 PM | Reply

#40 | Posted by snoofy at 2026-08-05 03:05 PM | Reply | Flag:

We're the largest exporter of petroleum in the world...

#42 | Posted by lfthndthrds at 2026-08-05 05:10 PM | Reply

We're the largest exporter of petroleum in the world...

How does that Glorify the Lord?

#43 | Posted by donnerboy at 2026-08-05 05:20 PM | Reply

The following HTML tags are allowed in comments: a href, b, i, p, br, ul, ol, li and blockquote. Others will be stripped out. Participants in this discussion must follow the site's moderation policy. Profanity will be filtered. Abusive conduct is not allowed.

Anyone can join this site and make comments. To post this comment, you must sign it with your Drudge Retort username. If you can't remember your username or password, use the lost password form to request it.
Username:
Password:

Home | Breaking News | Comments | User Blogs | Stats | Back Page | RSS Feed | RSS Spec | DMCA Compliance | Privacy

Drudge Retort