DVN - oil +10% coal +15% gas +20% - how high will prices go before demand falls

Energy commodities rallied Tuesday, as war in Ukraine showed no sign of slowing. With utilities, refineries and traders scrambling to secure supplies, oil prices traded up ~10%, thermal coal prices rose ~15%, and European natural gas prices spiked ~20%. Following nearly a decade of reduced fossil fuel investment, incremental short-term supplies are near impossible to find, suggesting reduced demand will be required to stabilize prices.   In the oil market, the International Energy Agency stated that a coordinated petroleum reserve release would bring ~60mb to market. While ongoing talks with Iran could bring an additional 50-100mb of floating storage to market in the near term. Nevertheless, prices rose Tuesday, with Morgan Stanly suggesting a $10 geopolitical risk premium should be tacked on to current oil prices.  Thermal coal prices shattered all time records Tuesday, following a record close Monday. Over the weekend, Germany announced plans to build coal inventories. With LNG

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oil +10%, coal +15%, gas +20% - how high will prices go before demand falls