I’ve talked about demand destruction before in this blog. Demand destruction occurs when the marginal benefit of using more crude oil exceeds the marginal cost for people. Essentially, when oil prices go too high, people use less oil. On a personal level, this means that people may drive fewer miles by staying closer to home on the weekends, they might postpone a long-distance vacation, or they might start taking the bus or work from home instead of commuting by car. wrote a nice article on this phenomenon last year where they stated “in the rich world oil demand has already peaked: it has fallen since 2005.” While demand destruction […]