The incentives to move quickly will be huge given pent-up demand from major energy importers, particularly in Asia. Asian governments and refineries have sharply curtailed consumption during the conflict and drawn down inventories. Many will likely be eager to rebuild stockpiles. Supply and demand are unlikely to recover in sync, however.<\/p>\n
For starters, it could take months for Middle East producers to restart much of the roughly 11 million bpd of shut-in output. It\u2019s also unclear how much demand has been truly destroyed and how much has simply been postponed.<\/p>\n
Add lingering geopolitical concerns, and the likely result is an uneven, stop-start rebound that strains supply chains and injects fresh volatility into oil prices.<\/p>\n
Historically, such conditions would have played to OPEC’s strengths. The group and its allies, including Russia, have repeatedly intervened to stabilise markets during past crises by adjusting output.<\/p>\n
A prime example is the Covid-19 pandemic, when coordinated cuts and subsequent increases helped steer prices through extreme swings.<\/p>\n
This time, however, the cartel looks far less capable of playing that role.<\/p>\n","protected":false},"excerpt":{"rendered":"The incentives to move quickly will be huge given pent-up demand from major energy importers, particularly in Asia.…\n","protected":false},"author":2,"featured_media":155469,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[26],"tags":[4059,54,94,35,2980,1738,1737,31317,39,55,50,101,51,293],"class_list":["post-155468","post","type-post","status-publish","format-standard","has-post-thumbnail","category-persian-gulf","tag-brazil","tag-europe","tag-iraq","tag-kuwait","tag-latin-america","tag-mena","tag-north-america","tag-opec-plus","tag-persian-gulf","tag-russia","tag-saudi-arabia","tag-strait-of-hormuz","tag-united-states","tag-venezuela"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@iran\/116731120450353548","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/posts\/155468","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/comments?post=155468"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/posts\/155468\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/media\/155469"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/media?parent=155468"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/categories?post=155468"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/tags?post=155468"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}