Believe it or not, crude oil was at only $86.34 per barrel on February 7, just slightly more than one month ago! Today, crude oil surpassed the $110 per barrel price on the April 08 contract. That is a 27.4% increase in just 5 weeks. Crude oil has risen 19 of the last 25 trading days. At that rate of inflation, compounding every five weeks, crude oil will cost nearly $150 per barrel by April 30th and more than $200 per barrel before the 4th of July. At some point soon, this escalating price spiral will crush demand, and this point can't be all that far away. That is ugly for the world economy! Something's gotta give! Soon!Wednesday, March 12, 2008
It's Crude and It's Ugly! Very Ugly!
Believe it or not, crude oil was at only $86.34 per barrel on February 7, just slightly more than one month ago! Today, crude oil surpassed the $110 per barrel price on the April 08 contract. That is a 27.4% increase in just 5 weeks. Crude oil has risen 19 of the last 25 trading days. At that rate of inflation, compounding every five weeks, crude oil will cost nearly $150 per barrel by April 30th and more than $200 per barrel before the 4th of July. At some point soon, this escalating price spiral will crush demand, and this point can't be all that far away. That is ugly for the world economy! Something's gotta give! Soon!
