rick rule oil rationing by price what it means

The article discusses a potential shift from anticipatory pricing to physical rationing in the global oil market, driven by the risk of supply disruptions through the Strait of Hormuz. This chokepoint handles 20-21% of global oil trade. If disruptions occur for 1-2 weeks, physical oil may become unavailable at benchmark prices, forcing buyers to pay higher delivered costs or face exclusion. The mechanism is supply_shortage via logistics chokepoint, affecting crude oil and refined product prices globally, with particular impact on import-dependent regions. Direct winners are alternative suppliers (e.g., US shale, other non-Middle East producers) and shipping companies; losers are net importers and refiners reliant on Gulf crude.