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
Peak demand and oil's long-term trap
19 January 2018
Fixating on the timing of a peak in oil demand is misplaced. Rather, the peak's significance is in shifting the paradigm, from perceived scarcity to perceived abundance. And it poses a problem for low-cost producers
The end is nigh for oil
12 January 2018
Fossil fuel merchants including oil companies are living on borrowed time, argues a new book
US energy: what to watch in 2018
3 January 2018
Oil production, trade, renewables and technology top our list of major questions facing America's energy industry heading into the new year