The Iran war set off the “most severe oil supply shock in history,” the International Energy Agency (IEA) said in a new report on Tuesday, warning that high prices would slash demand for crude, the primary lifeblood of the global economy.
In March, oil prices notched their largest one-month gain ever, the IEA said.
The IEA – a Paris-based group made up of 32 member nations, including the U.S. – warned of a widespread bout of “demand destruction" in the report. Under such a scenario, high prices would make oil unaffordable for many buyers, forcing them to find alternatives or forgo energy use altogether.
I’m in the states and wondering when the shock will really hit us. I’m looking at local gas prices (Upstate NY) and they’re high; just not a sigh as I’d expect them to be. Certainly not high enough to curb demand in any meaningful way.
It’s hurting local businesses more than regular people right now. Cabs and such need an extra $10-20 to fill up. Which is fine in the short run, cuz it’ll go back down right?
cab companies in my city have a thing for raising fares moving forward. Was just on the local news.
the US is an oil exporter, so it shouldn’t be affecting us nearly as much. (Honestly probably why they started the war so oil companies can charge more.)
I mean we export because the oil we extract is not the type our refineries are built to make into gas. So we export what we extract and import what we need. That being said we mostly import from the americas but that being said asia is going to draw more oil from our sources when the straight has issues. We are certainly more steps out than europe. but its still a fungible commodity.
part of it is they wer so low compared to everything else. When inflation hit a few years ago gas was hardly effected. Gas prices could have easily been 4-8 dollars near me and it would be about the same as prices were infaltion wise as the gulf war spike.
Right?! Dating myself here but I remember paying $4/gal in the mid-late 2000’s the last time we were bombing the Middle East and then had a “once in a lifetime” economic meltdown that has happened a half dozen times since I was born.
Adjusted for inflation, that’s $6.30/gal.
Expecting Europe to really get it late April, USA mid May.