As renewed chaos grips the oil market, one country is keeping global prices down – by reducing demand

This article examines the renewed turmoil in global oil markets following the bombing of Saudi Arabia's East-West pipeline. The pipeline had served as an outlet for Saudi exports that could not pass through the Strait of Hormuz. Prices have climbed above US$100 (A$140) a barrel for the first time since May, and unrest has followed in countries ranging from Syria to Portugal to Guatemala. Global oil stocks have declined by 507 million barrels since the US-Iran war began in February, as nations draw down their reserves. Dr Lurion De Mello argues that prices would have risen considerably further without China, where oil demand is on track to fall for a third consecutive year. Using LSEG vessel-tracking data, he links reduced Chinese crude buying to its electric vehicle transition. He contrasts this with Australia, whose reliance on diesel leaves it exposed to the same shock.