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Global Oil Security Looks Shakier as Conflicts Hit 45 Million Bpd of Supply
Conflicts in the Middle East and Ukraine have reduced global oil supply by 5–7 million barrels daily, straining refined fuel availability and prompting emergency measures worldwide.
Almost half of the world’s oil supply is produced in regions currently engaged in hot conflicts, Reuters reported this week. The situation raises questions about long-term oil supply security and the limits to diversification. The Middle East, of course, is the most obvious and most disruptive example. While oil prices on speculative markets have remained capped by trader optimism, the physical supply of the vital energy commodity has been sever…