Oil Price Blame Game Misses Point

The good news is that $75 oil is unsustainable, just as $10 oil was. At some point, demand and supply will come back into balance. Indeed, the rate of growth in demand may now be only 1%. A problem is that Opec may have underproduced in the first quarter of this year, says Credit Suisse.

If that is so, even higher crude prices are quite possible. A year ago, Goldman Sachs made its well-publicised prediction that a “super spike” of $105 could happen – reasoning that oil prices needed to be high enough for long enough to reduce global energy consumption meaningfully. It is doubtful that even a slowdown to growth of 1% counts as meaningful.
The Guardian