Oil markets may be tight today, but high prices can change tomorrow’s supply picture.
The West Asia conflict has kept crude prices volatile, especially in spot and near-dated contracts. Yet longer-dated Brent futures have remained comparatively stable, suggesting markets are less worried about the medium-term outlook.
That may be because commodity markets respond to scarcity. Sustained high prices can encourage new production, alternative supply routes, storage build-up and infrastructure investment. Energy security is now a higher priority for many governments than pure cost optimisation.
The near-term risks are still serious. Disrupted supply routes, depleted inventories and uncertainty around the Strait of Hormuz can keep prices supported and trigger sharp spikes.
But the longer the shock lasts, the stronger the incentive to diversify away from vulnerable chokepoints and add capacity.
Read Anuj Agarwal’s debut column for BasisPoint: Why Oil Price Spike May Trigger Supply Wave
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@EconicAnuj
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Can we have better management of the vegetable Mandi at Dadar on Senapati Bapat Marg? It’s causing 20mins jams of stand still traffic even at 730am!
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Need better traffic management on MIDC central road SEEPZ. Illegally parked cars, tempos and buses occupy a full lane. Vehicles making U-Turns at every intersection. Can we have more policing at least in peak hours?
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Concrete blocks being moved and turned to make illegal turns on Saki Vihar road near Saki Naka Junction. Causing heavy traffic jams and safety hazard for straight and fast moving traffic.
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AI-806 BOM-DEL 21 Jun 2023.
Boarded at 7am. No AC or Fan till 8am. Passengers nauseating and using safety instruction card to fan. Food crumbs all over seats and trays. Dirty floor carpets and head rest covers.
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No improvement in situation at all. All 2 wheelers and 3 wheelers still coming in from thing wrong side and blocking traffic towarddd Bisleri
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Blatant violation of Traffic lights and rules everyday throughout the day at JB Nagar Metro Station Junction, causing heavy jams and accidents