Whoa
So apparently crude fell ~10% today. I've heard poor economic data, OPEC raising output limits and even "sudden realization of the impact of CNG and EVs" (not joking), but that is still a whopper of a one-day move.
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We are seeing demand destruction in our market due to the high price of oil. I guess that the negative data confirmed fears that this was happening.
ReplyDeleteIronically on the same day, there was news that Iraq was to downgrade its crude production targets. Long term this means higher prices.
When you say "demand destruction", are you talking about temporary reduction in consumption due to high prices, or permanent shifts in favor of substitutes (like we saw with power generation moving away from fuel oil in the 1970s)?
ReplyDeleteI mean temporary
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