The Billion-Barrel Hormuz Oil Shock Is About to Crash Demand

From Bloomberg News

The Strait of Hormuz oil shock has yet to crash demand as the rich world borrows from its stocks and pays up to secure supply. Traders are now sounding the alarm that a harsh adjustment is coming.

The longer the vital oil channel doesn’t reopen, traders say, the more consumption is going to have to recalibrate lower to align with supply that’s dropped at least 10%. And for that to happen, people will have buy less, either through prices they can’t afford, or government intervention to force consumption down.