Spiraling Oil Prices Can Lead to Global Economic Destruction

Porvoo, Finland, 12 May 2009 - 32 Greenpeace activists from Finland and Sweden are demonstrating in a palm oil diesel refinery of Neste Oil in Porvoo, Finland. Neste Oil, an oil refining company largely owned by the Finnish government is set to become the world's largest consumer of palm oil. This expansion will lead to massive deforestation and contribute to global warming. -- 32 Greenpeacen aktivistia Suomesta ja Ruotsista ripustaa banderolleja Neste Oilin palmuöljydieselin tuotantolaitoksella Porvoon Kilpilahdessa. Aktivistit maalaavat myös palmuöljyn polttoaineena käytön lopettamista vaativan tekstin palmuöljyä sisältävän säiliön kylkeen. Palmuöljyn käyttö polttoaineena johtaa sademetsien tuhoon Kaakkois-Aasiassa.
© Greenpeace/Matti Snellman

Spiraling oil prices can ultimately lead the world into economic destruction. This is according to oil analyst Paul Sankey of Sankey Research. The Russia-Ukraine crisis is the primary mover of oil prices.

By definition, economic destruction is a breakdown of an area’s economy that results from a crisis.  It occurs after a severe economic contraction or recession. Economic destruction can last any number of years depending on how severe the damage is.

Sankey warned that the world’s path is heading toward economic destruction. “I’m concerned that we don’t have enough oil at all here,” he said. “We need to go to $120 to $150 [per barrel], and then we get into economic destruction,” he added.

Sankey sees oil trading between $100 to $150 per barrel until the crisis in Ukraine resolves. Currently, Brent crude futures briefly climbed to $119 before settling down to $116.59 per barrel.

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