# Oil price spike could prompt demand slump, MUFG analysis suggests | Reuters

> MUFG analysts said oil prices have become detached from the marginal cost of supply because of an extreme shortage, and that prices are rising to levels where demand destruction becomes prevalent. The comment came from MUFG's head of emerging markets research, Ehsan Khoman.

- Date: 2022-03-02 · published 2022-03-02T12:00:00.000Z
- Category: macro · region Global · magnitude medium
- Page: https://feedsoft.ai/events/10345-oil-price-spike-could-prompt-demand-slump-mufg-analysis-suggests-reuters
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md)

## Why it matters

If high crude prices curb fuel and petrochemical demand, energy-linked commodity demand could weaken, though the forecast is a risk rather than a confirmed change. Feed buyers should watch whether softer energy demand pulls down diesel and input costs.

## Read by commodity

- WTI: bearish ▼
- BRENT: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2022-06-23 | [Oil prices slump as investors fear Fed rate hikes will hurt demand \| Reuters](https://feedsoft.ai/events/41110-oil-prices-slump-as-investors-fear-fed-rate-hikes-will-hurt-demand-reuters.md) | +4.5% | -8.0% |
| WTI | 2021-04-21 | [Oil prices drop as India’s COVID-19 surge dents demand outlook \| Reuters](https://feedsoft.ai/events/47759-oil-prices-drop-as-india-s-covid-19-surge-dents-demand-outlook-reuters.md) | +0.7% | +4.7% |
| WTI | 2025-01-27 | [Oil hits 2-week low as China's DeepSeek AI spurs demand fears \| Reuters](https://feedsoft.ai/events/26682-oil-hits-2-week-low-as-china-s-deepseek-ai-spurs-demand-fears-reuters.md) | -2.8% | -5.2% |
| WTI | 2023-03-07 | [Oil and Gold Prices Slump As Powell Signals Further Rate Hikes to Come - Markets Insider](https://feedsoft.ai/events/36780-oil-and-gold-prices-slump-as-powell-signals-further-rate-hikes-to-come-markets.md) | -7.1% | -0.0% |
| WTI | 2020-03-15 | [Oil Slumps to Lowest Since 2016 as Demand Collapse Triggers Rout - Bloomberg](https://feedsoft.ai/events/7657-oil-slumps-to-lowest-since-2016-as-demand-collapse-triggers-rout-bloomberg.md) | -35.6% | -29.5% |
| BRENT | 2022-06-23 | [Oil prices slump as investors fear Fed rate hikes will hurt demand \| Reuters](https://feedsoft.ai/events/41110-oil-prices-slump-as-investors-fear-fed-rate-hikes-will-hurt-demand-reuters.md) | +4.3% | -2.0% |
| BRENT | 2021-04-21 | [Oil prices drop as India’s COVID-19 surge dents demand outlook \| Reuters](https://feedsoft.ai/events/47759-oil-prices-drop-as-india-s-covid-19-surge-dents-demand-outlook-reuters.md) | +0.6% | +4.4% |
| BRENT | 2025-01-27 | [Oil hits 2-week low as China's DeepSeek AI spurs demand fears \| Reuters](https://feedsoft.ai/events/26682-oil-hits-2-week-low-as-china-s-deepseek-ai-spurs-demand-fears-reuters.md) | -2.1% | -5.0% |

## Sources

- reuters.com: https://www.reuters.com/business/energy/oil-price-spike-could-prompt-demand-slump-mufg-analysis-suggests-2022-03-02/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.