OPINION: Rising oil prices put demand destruction back on the agenda


OPINION: Rising oil prices put demand destruction back on the agenda

Rising oil prices over the last two years have put the issue of demand destruction back on the agenda, as producers, traders and analysts try to estimate how consumers will respond.

Demand destruction always becomes a topic of discussion during this stage of the price cycle, and the current discussion resembles previous episodes of high and rising prices in 2005-2008 and 2011-2014.

Brent prices have surged by $47 per barrel (170 percent) from their low point in early 2016 and are now trading close to $75 per barrel.

Over the same period, weighted-average U.S. gasoline pump prices have risen by almost $1.13 per gallon (61 percent) and now stand just a few cents below $3 per gallon. Read More

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