Demand destruction cushions impact of geopolitical oil spikes

Global crude prices have defied expectations by remaining remarkably stable during the largest oil supply shock in decades, thanks to four critical market buffers. According to Kelly Xu, a Commodity & Energy Strategist at Alpine Macro, a catastrophic price surge was averted through massive demand destruction, non-Gulf supply growth, alternative export routes, and strategic inventory management. Speaking to businessline, Xu explained that these mechanisms successfully rebalanced the global energy market and cushioned major import-dependent economies like India. Supply growth outside the Gulf has provided an additional cushion, she said. Higher output from non-OPEC+ producers — projected to grow by about…