New OIES Energy Comment.
Oil has always assumed a special position within the energy complex.
Oil is a global and mature market, fungible, with many interrelated physical and financial layers, diverse set of players both on the demand and the supply side and has dealt with many shocks in the past (geopolitical and weather-related outages and demand shocks).
Nevertheless, 2022 generated new types of shocks and the oil market has not been immune from government interventions which added new layers of uncertainty. However, despite the severity of the shocks experienced in 2022, the oil market through its various layers and players has shown strong resilience and continues to perform its key functions of price discovery and redirecting crude and products in the face of a massive shock.