Displaying items by tag: oil demand

Oil prices have started to recede but that could just be temporary as reserves flooding isn’t a permanent solution. While demand destruction is possible if oil remains elevated near $130 a barrel, international countries are feeling the pain. Developing economies in Latin America, Southeast Asia, and Africa are being pushed to the limits with energy cost burdens. That effect could trickle into the US. Latin America is already experiencing demand destruction. If oil prices climb and stay above $100 a barrel, energy costs could burden Americans and lead to a recession, but given the security on other energy fronts—unlike in Europe—the US is in a better position to weather the storm.

Finsum: Demand destruction driving a recession is unlikely in the US alone, but if international markets are hit heavily, globalization could cause trickle effects in America.