How Long Can Demand Destruction Keep a Lid on Oil Prices?

In a somewhat puzzling market development, oil prices haven't spiked yet to record highs amid the worst supply disruption in history.

That's because the market still hopes for a quick resolution to the Strait of Hormuz crisis (for more than three months now), global inventories have offered a supply buffer, the world's top crude importer, China, is staying away from spot purchases, and last but not least, demand destruction is accelerating amid the high prices.