Global oil prices are facing persistent elevated levels driven by geopolitical conflict in the Middle East and a shift towards a "just in case" supply strategy, potentially signaling the end of the era of cheap oil.

• Oil prices, though retreated below US$100 per barrel, remain higher than the US$70-80 range seen before the conflict and the long-term average of recent decades.
• The disruption impacts not only fuel but also over 6,000 everyday products derived from petrochemicals, including plastics, fertilizers, and building materials.
• The shift from a "just-in-time" to a "just in case" economic model, necessitated by global disruptions like the war in Ukraine and Middle East conflict, incurs new storage and infrastructure costs.