Demand Destruction Remains Elusive Despite Inflation
The Russian invasion of Ukraine sent oil prices to the highest levels since 2014, but prices were already heading higher before the invasion as producers and refiners were slow to meet the post-COVID jump in demand. Soaring energy prices and inflation are prompting central banks to tighten monetary policy and raise interest rates, which will slow down economic growth. The slowdown in global economic growth now looks inevitable due to aggressive monetary tightening policies, record-high diesel and gasoline prices, and—as a result of…