00:0020% of the world's energy supply flows through the Strait of Hormuz.
00:04That's oil, that's liquefied natural gas, it's refined products,
00:08goes to Europe and Asia primarily, and both of those regions
00:12are seeing the impact of having that much cut off. The U.S. can't make up
00:15all of that supply. Inventories in the system are being drawn
00:19down, and the supply situation is tightening,
00:24and that's a concern. And, you know, you think about the U.S.
00:28and where we stand when it comes to production, that, of course, has insulated the
00:31U.S. consumer to some degree from some of the higher prices that we're seeing in Asia,
00:36that we're seeing in Europe. And I just wonder from where you're sitting, how
00:39long you think that will continue to be the case, or, you know, is the U.S. heading towards
00:43a situation where consumers are going to see the same sort of prices that we're starting
00:48to see in Asia? I think the real thing is the U.S. is not going
00:52to see supply outages. We're starting to see risks of supply
00:55outages in some of these economies. In Europe, you're seeing flights cancelled
01:00and schedules re-optimized because jet fuel is getting very, very tight in Europe.
01:04We've seen a number of economies in Asia that have instituted policies
01:08to reduce demand because they're concerned about running out of supply.
01:11Countries like Australia that have shut down most of their refining capacity
01:15and are heavily dependent upon imports are taking measures to address that.
01:20So I think the U.S. is going to see the price pressures.
01:23It's a global market. These prices are set
01:25in global commodity markets. But the risk of supply
01:29outages in other parts of the world is much higher
01:31than it is here in the U.S.
