Even if prices surge to record territory, the effect on global oil demand will most likely not be as severe as past rallies. “This time around you need a really big price spike to really damage demand because people’s budgets have adjusted and they have gotten used to it,” said Jeffrey Currie, analyst at Goldman Sachs investment bank.
Analysts said global oil demand took a hit in 2005 when average crude prices soared more than 35 per cent from the year before. Average prices for this year so far have actually fallen about nine per cent from last year’s record average of around $66 a barrel.
Epaper
Newsletter
Stocks
Weather
Horoscope
