Stephen Jen in Reuters: “$100 a Barrel Oil Doesn’t Mean What It Used To”
Reuters, April 30, 2026
In his latest column for Reuters, Stephen Jen, CEO and co-CIO of Eurizon SLJ Capital, examines why global equity markets have remained relatively resilient despite the sharp rise in oil prices following the Iran war.
The article argues that today’s oil shock needs to be assessed in context. While Brent crude has risen sharply, Stephen notes that the global economy is much larger, less oil intensive, and better able to absorb a given move in energy prices than it was during previous oil shocks.
As Stephen writes:
“Adjusting for inflation and the use of oil as a percentage of GDP, our econometric estimates suggest that $100 a barrel today is equivalent to around $50 before the Global Financial Crisis or roughly $5 in 1973.”
The column also highlights the relative resilience of the U.S. economy, which Stephen argues is now less sensitive to oil price increases than Europe or Asia, partly because of greater energy self-sufficiency following the shale boom.
He concludes:
“But, overall, the tolerance of the global economy to oil shocks may be substantially higher than some think. As long as oil prices remain broadly range-bound, there is little reason to expect current market trends to reverse.”
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