It is strange that most countries do not seem to really prepare for severe supply shortages.
In the second quarter of 2020, the global response COVID with widespread lockdowns and cease of travel lowered global demand of oil by only 10%. Briefly, the oil price approached almost zero.
Now, supply is forcefully reduced by about 20%.
Another number is that the oil price spike of 2008, where brent crude went over 100 USD per barrel, was supposedly triggered by a much smaller shortfall of supply (if I remember correctly, in the order of a few percent).
It is strange that most countries do not seem to really prepare for severe supply shortages.
In the second quarter of 2020, the global response COVID with widespread lockdowns and cease of travel lowered global demand of oil by only 10%. Briefly, the oil price approached almost zero.
Now, supply is forcefully reduced by about 20%.
Another number is that the oil price spike of 2008, where brent crude went over 100 USD per barrel, was supposedly triggered by a much smaller shortfall of supply (if I remember correctly, in the order of a few percent).
The difference is that during COVID people was forced home, now people still need to go to work.