Australians were warned soon after the Middle East conflict started that the country could run short on fuel, with prices rising to record levels owing to disrupted oil supplies. However, amid an uneasy peace deal and continued supply disruptions, petrol prices are now lower than they were before the conflict began.
Official warnings over fuel usage have largely disappeared, as fuel suppliers outside the Middle East have proved to be much more flexible than analysts expected. China, in particular, surprised everyone by stepping up production and exports.
The question remains: why haven't we run out of fuel, why were we told to cut back, and what will happen now? The situation suggests that the initial fears of a severe fuel crisis may have been overblown, but the underlying risks remain as global supply chains continue to face disruptions.
