Oil’s Crisis Delay: Stockpiles and Flexibility Cushion Market Shock
Despite Iran-related disruption that knocked roughly 14 million barrels a day off global supply, oil markets have not collapsed thanks to ample pre-war inventories, added supply from non-Gulf producers, and greater flexibility from both producers and consumers. Demand has softened modestly, particularly in aviation and petrochemicals, and inventories are being drawn down, but for now the cushion holds. The situation remains temporary and contingent on stockpiles lasting and ongoing resilience elsewhere, especially from US shale and alternative suppliers.