A ton of physical oil infrastructure has been destroyed. With control of the strait still contested and oil demand structurally falling due to electrification, why should the Gulf states bother spending their money to get up to pre war production levels (when there was a pre war glut anyway?)

April 10, 2026 - 16:37 UTC

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Wouldn't you rather sell one barrel of oil for $100 than two barrels of oil for $50?
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That's basically the entire idea behind OPEC, because otherwise there really are enough competitors that it gets pretty close to the marginal cost of production. I don't know how much extra capacity they had built, but if they're below that, then they'll have the incentive to rebuild.
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