Signs of an economic slowdown are emerging in different parts of the world. Kemp: demand destruction is about to become pronounced in diesel fuel demand. Goldman Sachs: it may take a while before inflation erodes demand enough for a sustained price decline. Crude oil is a notoriously inelastic commodity—whatever its price, consumption does not vary greatly. Yet per a notorious industry joke, the only cure for high oil prices is higher oil prices. And we seem to be nearing the point of demand destruction as oil-dependent economies begin to slow down in response to rising prices. The first signs are emerging in fuel consumption and financial markets. A Wall Street Journal report from this week noted that U.S. drivers are beginning to curb their gasoline consumption in response to prices that earlier this week reached a historic high, topping $5 per gallon before retreating a few cents. The report […]