On the same day as oil prices slip to their lowest since Putin's invasion of Ukraine - and reports of Russia selling oil to China for Yuan - Goldman Sachs doubled-down on their Poszar-esque commodity-currency-linked warnings about the regime-change under way in the energy complex.

As Goldman's Jeff Currie recently warned, commodities are entering a volatility trap.

Crucially, as we detail below, this self-sustaining regime-shift driven by both physical and financial factors, is likely to last years rather than weeks.

'Physically'

Inventories are already at historical lows in terms of 'days of demand' following 20 consecutive months of deficit...

...and Goldman notes that the unavailability of the usual system buffers of inventory and spare capacity...

...has required an evolution in the pricing regime towards the more abrupt mechanism of demand destruction, amplifying the price and volatility impact of the continued pandemic shocks and, currently, the Russia-Ukraine war.

Remember, the 'physical' markets have suddenly become significantly more complicated (and delivery anything but guaranteed) as we recently noted 'oil is no longer fungible' to some extent, for some buyers... "Russian oil bidless, non-Russian oil offerless"...