In the aftermath of the war in West Asia, crude oil prices surged to as high as $118 a barrel last week. However, the global oil market is once again operating under a profound geopolitical shadow. Currently, however, the impact on physical supply is so drastic that prices continue to climb without a visible peak. Global oil demand still exceeds 105 million barrels per day, and petrochemicals account for a rising share of incremental consumption. Geopolitics will continue to influence oil prices by shaping perceptions of safety, reliability, and continuity, as well as affecting the physical flow of oil.
