International trade is an intricate web of supply lines, delivery services, and consumer demand, all delicately balanced for efficiency. It’s a beautiful sight when it’s working, but as we have seen over the past couple of weeks, the system can collapse very quickly.
The cause of this disruption has of course been the American and Israeli offensive on the Republic of Iran and the impact on global oil supply.
So could New Zealand feasibly run-out of oil?
Official figures show we have more than the 90 days of oil stocks required under our international obligations. Dulani Jayasuriya from the Auckland University Business School says those numbers deserve closer scrutiny and warns that our reliance on just-in-time supply chains has left us in a precarious position.
To dig into this further, Dulani joins Emile Donovan for a chat.
Fuel prices at a Z in Paraparaumu.
Photo: RNZ / Samuel Rillstone