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Source: economist.com

Oil has hit another new high, on Monday April 4th, light crude hit $58 for the first time ever. OPEC has promised to raise its production by another 500,000 barrels per day to help ease the pain. But with capacity tight and demand continuing to grow, high oil prices may be here to stay.

polycarp wrote: Source: economist.com

Oil has hit another new high, on Monday April 4th, light crude hit $58 for the first time ever. OPEC has promised to raise its production by another 500,000 barrels per day to help ease the pain. But with capacity tight and demand continuing to grow, high oil prices may be here to stay.
And did you see that some of the financial firms have targeted oil to hit over $100 per barrel by summer?

That should be loads of fun.

Tombstone wrote: And did you see that some of the financial firms have targeted oil to hit over $100 per barrel by summer?

That should be loads of fun.


Hello Tombstone, that sounds really scary. Will the world system remain as we know it, if oil should hit $100 per barrel?

polycarp wrote: Hello Tombstone, that sounds really scary. Will the world system remain as we know it, if oil should hit $100 per barrel?
This week was the first week that the non "Chicken Little" economists finally admitted that they were worried about inflation. Everything we use has arrived into our hot little hands due to the availability of oil.

Forgetting about manufacturing, farm products, and commercial (trucking) transportation, I think most Americans will be impacted and drastically change their gasoline consumption habits when gas gets near $4.00 per gallon. In my opinion, that's when the real ripple effect will take off - and it will have a negative impact on tourism, retail sales, and all industries that depend on disposable income.