Archive · 10 Sep 2026
Oil Could Top $150, Triggering Demand Destruction and Recession
Ajay Bagga discussed what could happen if crude oil becomes extremely expensive.
He said prices between $120 and $150 could make people and businesses buy less oil.
This is called demand destruction.
He warned that weaker demand could push economies into recession.
Some businesses that depend on energy could become unable to operate profitably.
Governments might need to spend more on energy subsidies.
At the same time, a recession could reduce government tax revenues.
Bagga said officials have studied earlier oil crises and may avoid repeating past mistakes.
Ajay Bagga warned that oil prices reaching $120-$150 could cause major demand destruction.
He said economies could tip into recession as higher energy costs pass through to consumers and businesses.
Bagga warned that many downstream businesses could become unviable at those price levels.
He said governments already face fiscal deficits and could see revenues shrink if subsidies rise or recession hits.
Bagga said past oil crises are well researched, giving governments and central banks a chance to avoid earlier mistakes.
- Who
- Global commentator Ajay Bagga.
- What
- Bagga warned that crude oil prices of $120-$150 could reduce demand, hurt businesses and contribute to recession.
- When
- No specific time was provided.
- Where
- No specific location was provided; the comments concerned economies and governments worldwide.
- Why
- Because higher energy prices could increase subsidy costs, reduce government revenues and make businesses unviable.
- Commentator
- Ajay Bagga
- Price range discussed
- $120-$150 per barrel
- Potential economic effect
- Massive demand destruction and possible recession
- Business risk
- Many downstream businesses could become unviable
- Government concern
- Higher energy subsidies could worsen existing fiscal deficits
- Revenue concern
- A recession could shrink government revenues
- Policy assessment
- Past oil crises are well researched, which could help officials avoid earlier mistakes