The demand destruction timebomb
It is not a case of if or when, but the length and magnitude of economic damage from elevated oil prices
The 2026 oil shock, initially a supply crisis of historic scale, is rapidly evolving into a full-blown demand-side challenge, threatening to upend the global recovery. As the benchmark Brent price surpasses the $100/bl psychological and structural threshold, the macroeconomic outlook continues to deteriorate. While the global economy has already faced pressure from rising trade tensions and shifting monetary policies, high energy costs are beginning to ripple through the industrial, commercial and residential sectors across regions, thereby slowing the post-pandemic recovery. While global oil demand has not yet shown sustained contraction, historical precedent suggests prolonged periods of e
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