Javier Blas on Why Oil Could Go Much, Much Higher

The podcast explores the complexities of the current oil market crisis, questioning why oil prices haven't spiked dramatically despite significant disruptions and government interventions. Javier Blas, Bloomberg energy and commodities columnist, explains that strategic inventories and an initial oversupply have cushioned the market, but warns of potential extreme scenarios with Strait of Hormuz closures. The conversation highlights the disconnect between crude oil prices and refined product costs, particularly diesel in Asian markets, which are reaching unprecedented levels due to refinery capacity losses. Blas suggests that while the U.S. is somewhat insulated due to natural gas reserves, East Asian countries face immediate impacts and potential rationing, also addressing concerns about food security, noting high rice inventories as a buffer against potential crises.