The Cushion Is Gone and the Oil Market Is Now Exposed
The oil market initially absorbed a historic supply disruption thanks to surplus, floating storage, and policy interventions. Those buffers are now largely depleted, leaving the system structurally fragile and highly sensitive to new disruptions. With spare capacity constrained and inventories falling, even minor supply shocks could now trigger disproportionate price spikes.
Crunch Time! Rock, meet hard place.
RE