The above diagram shows that the pattern of growth in oil consumption has varied greatly for different groupings of countries. Oil consumption in China and India has continued to grow, whether or not oil prices rose greatly. Oil consumption also continued to grow in the "Others" category, which includes many of the oil producing nations. Oil consumption in the Former Soviet Union also followed a pattern somewhat independent of world oil prices. It was only the OECD whose consumption changed significantly as world oil prices changed.

Based on this comparison, it seems to me that OECD consumption is far more affected by oil price changes than the consumption of other countries. Based on data shown in this post, it seems to me that OECD economies can only absorb a price increase of US$10 per barrel in a year, without experiencing slowdowns in their economies and a reduction in oil consumption. Non-OECD economies (including BRIC countries) are more resilient, and are more likely to continue to show growing consumption.

Below the fold, I examine similarities and differences in oil consumption patterns of OECD and Non-OECD countries and offer my view as to what the future may hold.