
PANews April 25 news, according to Jinshi reports, the oil shock in the Strait of Hormuz has not yet led to a collapse in demand, as wealthy countries are drawing on inventories and ensuring supply at high prices. However, traders are now issuing warnings: a severe reduction in demand is imminent. Traders say that the longer the closure of the Strait of Hormuz lasts, the more consumption will have to adjust downward to match at least a 10% decline in supply. To achieve this, people will have to reduce purchases, either through unaffordable prices or through government intervention to suppress consumption. Saad Rahim, chief economist of the Toka Group, stated that demand destruction is occurring at those non-explicit pricing hubs. This reduction is already happening, but if this situation continues, the scale of the demand reduction will only grow larger. We are at a critical turning point.
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