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.
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.