Demand destruction is always a threat when prices rise precipitously. At what price point will demand drop enough in reaction to the prices to be noticed by the market? Already, one airline has claimed it is cancelling flights because of the high prices for jet fuel.
With high oil and gas prices, we don't know if travelers will change plans across the globe. There was an expectation of more travel as people globally return to a normal life post-pandemic, but we don't know what price is too high for gasoline and jet fuel. We don't yet know the price point at which consumers will prefer to stay home, especially because inflation is distorting prices.
We also don't know at what point high fuel costs will hurt the economy, although we are starting to see some important signals of this. In Europe, steel producers are starting to cut back on production because of high electricity prices. With already high inflation and supply chain problems globally, the surge in oil and gas prices is a real threat to global economic growth. If the economy turns bad, demand will fall.
Speculation
However, traders make (and lose) money when the market moves up and down. Some speculators are having a field day now, and only a fool would claim to know the precise end of this wild ride upward.
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