Oil, in under a hundred words

Oil demand, hence price, hence production, collapsed in the pandemic spring of 2020.

Consumption resumed in the second quarter, rising steadily through 2021. Production, which can be hard to restart, lagged throughout. Prices headed higher.

Worse, profit-taking producers under investor pressure deliberately held back. Already high prices surged when Putin's invasion sent global energy markets into upheaval. Gasoline hit $5.

Price-shocked consumers consequently drove less; U.S. demand plummeted to below prepandemic levels. Gasoline prices declined for 99 days straight.

Worldwide production finally rose above consumption in the second quarter of 2022.

Now you know.

Copyright (C) 2022 James Michael Brennan, All Rights Reserved

The latest from Does It Hurt To Think? is here.