, Columnist
The Oil Market Is Moving Into Demand Destruction Mode
Managed consumption: Thailand saw a massive surge in demand before a record price hike.
Photographer: Thai News Pix/LightRocketFive weeks into the Third Gulf War, the math of oil-barrel counting is intractable: The world is short of the black stuff. Measures ranging from pipelines that bypass the Strait of Hormuz to tapping strategic reserves have offered a cushion. But unless the US and Israel’s Iran conflict ends very soon, oil consumption needs to adjust to lower supply — perhaps much lower. Enter demand destruction.
Until now the market has absorbed the shortage of crude fairly well. Despite alarmist headlines, benchmark prices are hovering around $100 a barrel, well below previous crises when they surged to $130-$150.1