The feedback across years is still a short enough time periods for markets to adjust.
Oilfields generally last a long time as there is little incentive to drill a lot of holes and add hundreds of millions in equipment to empty one in 5 years or less. Instead companies extract oil across decades so when a new oil filed gets tapped regional prices shift, refineries adapt, until regional prices quickly match global ones long before the well is dry.
Fracking is something of an exception, but it’s still dependent on having refineries to process the stuff.
Oilfields generally last a long time as there is little incentive to drill a lot of holes and add hundreds of millions in equipment to empty one in 5 years or less. Instead companies extract oil across decades so when a new oil filed gets tapped regional prices shift, refineries adapt, until regional prices quickly match global ones long before the well is dry.
Fracking is something of an exception, but it’s still dependent on having refineries to process the stuff.