How long can oil markets absorb the Hormuz shock?

In a recent article for the Financial Times, Christof Rühl, Global Advisor at Crystol Energy, examines why repeated disruptions in the Strait of Hormuz have had only a limited impact on the global economy. Strong inventories, diversified supply routes, flexible trade flows and a long term decline in oil intensity have made today’s oil market far more resilient than in previous decades. However, Rühl cautions that this resilience should not be mistaken for invulnerability, warning that muted economic consequences could encourage greater political risk taking and eventually push the system beyond its limits.