Why oil’s not at $200 after the biggest supply shock in history
Despite a significant supply shock from the effective closure of the Strait of Hormuz, oil prices have remained below $100 a barrel. This resilience is attributed to a combination of record US exports, reduced Chinese demand, and continued, albeit risky, transit through the strait. While current buffers have absorbed the immediate impact, global inventories are drawing down rapidly, leaving the market vulnerable to future disruptions. AI
