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What Does the Fed’s Jerome Powell Have Up His Sleeve?
What Does the Fed’s Jerome Powell Have Up His Sleeve? The Real Goal of Fed Policy: Breaking Inflation, the Middle Class or the Bubble Economy? “There is no sense that inflation is coming down,” said Federal Reserve Chairman Jerome Powell at a November 2 press conference, — this despite eight months of aggressive interest rate hikes and “quantitative […]
The Diesel Crunch Is Finally Causing Demand Destruction
The Diesel Crunch Is Finally Causing Demand Destruction Diesel inventories slumped to their lowest level for the time of the year since 1951. signs have emerged that weaker demand in the past weeks may have slowly started to rebuild diesel inventories. Refiners are processing more crude oil to capture the still high refining margins. High […]
Just a hint from the mainstream that limits precipitate rising oil prices
Just a hint from the mainstream that limits precipitate rising oil prices Last week a Bloomberg writer at the very end of an article explained that the “only solution” to high gasoline and diesel prices is recession. While I would not accuse the writer of advocating degrowth—this would be too radical for a mainstream business publication—his […]
Has Gasoline Price Shock Triggered Demand Destruction Yet? And Where Will Gasoline Prices Go from Here?
Has Gasoline Price Shock Triggered Demand Destruction Yet? And Where Will Gasoline Prices Go from Here? There’s some demand destruction. But oil bounced again, gasoline might be next. My guess is a long-drawn-out zigzag higher. Following the dizzying spike in gasoline prices, the question arises when demand destruction will set in, where people start driving […]
A World That’s More Expensive Is Starting to Destroy Demand
A World That’s More Expensive Is Starting to Destroy Demand Buyers are balking at high prices for fuel, food and metals, threatening to tip economies back into recession. The Central de Abastos Market in Mexico City. Photographer: Alejandro Cegarra/Bloomberg Prices for some of the world’s most pivotal products – foods, fuels, plastics, metals – are spiking beyond […]
Demand Destruction Has Begun
Demand Destruction Has Begun One month ago, Brent jumped above $100/bbl for the first time in eight years as Russia executed a full-scale invasion of Ukraine, and it became clear that western governments would impose sanctions. The oil market has been in triple digits for practically the entire time since. And, after a month of […]
Energy Demand Destruction Will Lead To Global Recession, Tellurian Chairman Warns
Energy Demand Destruction Will Lead To Global Recession, Tellurian Chairman Warns One month ago, Goldman said that the one thing that could accelerate the resolution of Europe’s energy crisis was plain, simple “demand destruction” – i.e., a plunge in demand due to prices that were too high until the reduced demand leads to less supply and a […]
The Chilling Things Delta Said about the Airline Business, the 90% Collapse in Q2 Revenues, and Why Some Demand Destruction May Be “Permanent”
The Chilling Things Delta Said about the Airline Business, the 90% Collapse in Q2 Revenues, and Why Some Demand Destruction May Be “Permanent” Shares go to heck after the mother of all revenue-warnings, plunge 20% in two days, including 7% after hours. Its disclosure confirms Buffett’s decision to dump his airlines in mid-crash. Delta Airlines […]
Unprecedented Demand Destruction Marks The Return Of The Super Contango
Unprecedented Demand Destruction Marks The Return Of The Super Contango These days, every corner of the oil market is “unprecedented”—from the demand destruction to the supply surge and the resulting glut. The oil futures curve is no exception and is also in a state never seen before. This is the super contango, the market situation in […]
IEA Asks Majors Oil Producers To Boost Production
IEA Asks Majors Oil Producers To Boost Production Rising oil prices are hurting consumers, Fatih Birol, the Executive Director of the International Energy Agency (IEA), says, calling on major all producers to do the best they can to further boost production and ease persistent supply concerns that pushed Brent Crude to above $86 a barrel […]
OPEC’s Dilemma: Demand Destruction Or Production Boost
OPEC’s Dilemma: Demand Destruction Or Production Boost The early signs of discontent and demand destruction could be forcing OPEC’s hand, but increasing production carries its own risks. OPEC and Russia are considering raising oil production in a few weeks’ time, and while much of the focus has (rightly) been on the supply outages in Venezuela […]
Peak Oil Ass-Backwards (part 2): Crashing OilPrices Aren’t Due to an Oil Glut But to DemandDestruction and Peaking Credit
Peak Oil Ass-Backwards (part 2): Crashing Oil Prices Aren’t Due to an Oil Glut But to Demand Destruction and Peaking Credit As I began to mention at the end of the first part of this three-parter, I’ve only just recently come to the conclusion that oil prices aren’t going to have a tendency to rise due to […]
The Archdruid Report: Déjà Vu All Over Again
The Archdruid Report: Déjà Vu All Over Again. Over the last few weeks, a number of regular readers of The Archdruid Report have asked me what I think about the recent plunge in the price of oil and the apparent end of the fracking bubble. That interest seems to be fairly widespread, and has attracted many of […]
