Oil Prices on Rollercoaster Ride Since Pandemic, Underscoring Long-Term Supply Issues
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Oil and gas prices have seen wild swings since the pandemic, described as the "mother of all shocks" by Harvard economist Kenneth Rogoff. Prices plunged in 2020 then soared in 2022.
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Prices have eased recently due to recession fears, but are likely to trend higher long-term as demand rises faster than supply.
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Rogoff says it can take huge price changes to balance the oil/gas market after major demand shifts like those caused by the pandemic.
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By 2050, global oil demand could increase by as much as 42% according to EIA estimates, underscoring the supply challenges ahead.
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US oil production has hit new highs with firms racing to meet rising crude demand, but it may take years to fix the industry's chronic undersupply issues.