Oil Price Drop Reflects Demand Destruction, IEA Says
- Emerging markets hit hardest by oil surge toward $100: IEA
- IEA ready to act if Mideast crisis were to disrupt oil supply
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Oil’s retreat from almost $100 a barrel shows that prices climbed high enough to start eroding demand in the US and elsewhere, according to the International Energy Agency.
“Supply fears gave way to deteriorating macroeconomic indicators and signs of demand destruction in the United States, where gasoline deliveries plunged to two-decade lows,” the IEA said in its monthly market report. “Demand destruction has hit emerging markets even harder, as currency effects and the removal of subsidies have amplified the rise in fuel prices.”