Oddbean new post about login | logout Oil Prices Show Weakening Demand, but Not Because of Electric Cars https://mises.org/mises-wire/oil-prices-show-weakening-demand-not-because-electric-cars By Daniel Lacalle > Oil prices have weakened in recent weeks despite the war in Gaza and rising geopolitical risk. This points to overall economic contraction.
I've thought that the fact that gas prices have stayed low, despite all that is going on in the Middle East, is likely a sign that the world's economy is plummeting and we just don't see it yet. After the October 7th attack and the Houthi attacks on shipping, I expected gas prices to sky rocket over $5/gallon and they have stayed right around $3/gallon. That says to me that demand is extraordinarily low.