Related Articles
Forward article link
Share PDF with colleagues

Demand destruction is on its way

Which ends first: the oil market's bull run, or the global economic recovery?

OIL PRICES are too high. Even before Libya descended into anarchy, prompting the surge in crude markets that has taken Brent to between $110 and $120 a barrel, the International Energy Agency (IEA) said the "danger zone" had been breached. By January, spending on oil imports in the rich countries of the OECD had reached levels last seen in 2008, the agency said. Global recession followed the price spike of 2008, and it could do so again. Nouriel Roubini, the economist who gained fame for predicting the financial crash, says the latest rally is particularly ominous for European economies. The volume of extra cash now being spent by the world's biggest importers because of the latest price ju

Also in this section
The price is right
5 April 2018
With the help of thirsty consumers and collapsing Venezuelan output, the market seems at last to have found its range
Opec and IEA bristle at Trump's trade posturing
16 March 2018
The IEA and Opec say Trump’s trade plans are a threat to global growth
Five key takeaways from the big three oil market reports
15 March 2018
Demand and supply data still diverge, Venezuela’s increasingly critical to balances, and some macro alarm bells are starting to ring