PETROL PRICE
03/23/2026 |
Due the Iran War, global oil supply is down about 10%. Given that the short-run price elasticity of demand for oil is about 0.15, meaning a 1% change in the price of oil leads to a 0.15% change in the quantity demanded, to reduce demand by 10% will require a 70% rise in price. Pre-war Brent was $70/bbl. A 70% hike brings Brent to $119/bbl.