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Iran war drives deeper oil shock than prices reveal
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Estimates indicate that companies have turned off 10 per cent or more of the world’s oil supply since the war with Iran started.
PHOTO: AFP
Rebecca F. Elliott
- War with Iran has disrupted oil markets, trapping oil in the Persian Gulf due to shipping concerns despite a ceasefire.
- Futures prices don't reflect the "on-the-ground" reality, with spot prices significantly higher, indicating a major supply shock.
- Analysts struggle to explain the large price gap, but companies have cut 10%+ of global oil supply, causing shortages in Asia.
AI generated
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Google the price of oil, and you will most likely find two widely quoted prices for the commodity, one in the US, the other in Europe.
