Economics 101
Surging Fuel Costs Have Begun To Trigger Demand Destruction
Mike Mueller, head of Asian sales at the world’s biggest independent oil trader, Vitol, says they are seeing clear signs that the cost of oil is beginning to cause demand destruction, as consumers forcibly reduce consumption due to high prices. He spoke about it on a podcast by Gulf Intelligence, based out of Dubai
Muller said, “There’s very clear evidence out there of economic stress being caused by the high prices, what some people refer to as demand destruction… not just oil, but also liquefied natural gas.”
Refined fuels have skyrocketed in price to record highs, in the US and most other countries, driving the rise in inflation. Refined fuels have risen even faster and higher than crude, which itself is up 45% to $110 per barrel. The primary cause of the price rise in crude has been the disruption to the supply flows of Russian oil following the invasion of Ukraine. Western leaders sanctioned Russia, limiting the markets …………
>https://www.thefinancialtrends.com/2022/07/03/surging-fuel-costs-have-begun-to-trigger-demand-destruction/