The spike in oil prices he described took place on March 12th, 2003, pushing the price of a barrel of crude all the way up to $37.83 and the price of a gallon of gasoline to $1.72. Yesterday, oil closed at $137 and gas sells for $4.06.
June 26th, 2008 | Bill Bonner | 3 comments | ContinuedAll Posts Tagged With: "oil prices"
Inflation Hasn’t Yet Reached the Wild Levels of the 70s
Much too late in the game, Fed chairmen Ben Bernanke is talking up the dollar, as if kind words were any replacement for a real yield. Bernanke is trying to talk people out of being worried about the very inflation his monetary policy has caused worldwide. He told listeners to a commencement speech at Harvard that heightened inflation expectations by the public are a “significant concern.”
June 5th, 2008 | Dan Denning | 1 comment | Continued
The Price of Oil is in a Bubble
The main reason for the lowering of the forecast is a sharp increase in commodity prices and in particular the price of oil, which Fed officials fear could ignite inflation expectations and lift the underlying rate of inflation. On Friday, May 23, the price of oil closed at around $132/barrel. The yearly rate of growth of the price of oil jumped to 106.3% from 72.9% in April.
June 5th, 2008 | Frank Shostak | 2 comments | Continued
Price of Eggs Go Up as Oil Prices Go Up
The price of eggs has gone up 30% in the last 12 months. Why the big increase? Because the things that go into making an egg have gone way up – feed for the chickens, heat, light, and transportation.
June 4th, 2008 | Bill Bonner | 3 comments | Continued
High oil Prices are Now Oozing into the Entire Economy
When the Fed began cutting rates last September, the price of oil shot up. High oil prices are now oozing into the entire economy…greasing up prices for everything from cucumbers to diapers. And the trends that held consumer prices down for so long are shoving them in the other direction.
June 3rd, 2008 | Bill Bonner | 3 comments | Continued
The Confusing Big Picture in the Oil Market
We are out of oil; at $130, we regard it as too speculative. But that doesn’t mean that the oil bubble is going to burst anytime soon…or that the real price of oil won’t be even higher 10 years from now than it is today.
May 30th, 2008 | Bill Bonner | 1 comment | Continued
Where Will Future Oil Production Come From and How Can Investors Profit Today? Part 2
To answer those questions we turn to a report published in late March by UBS energy analyst Jon Rigby and his team in London. Their incredibly useful report is called, “Will there be enough production capacity?” UBS has been battered by its huge sub-prime related losses. But their work on where future oil production will actually come from nearly redeems them…
May 23rd, 2008 | Dan Denning | 2 comments | Continued
Has Oil Hit Its Peak Price?
Has oil hit its peak price or not? The answer to that question leads us to ask whether or not commodities are a bubble about to burst. Barron’s recent cover story on commodities came down on the side that the party was over. I don’t put a lot of faith in macro predictions – as no one can predict the future. But you can study track records. You can look at history. History reveals some interesting clues about what the future may hold.
May 22nd, 2008 | Chris Mayer | 1 comment | Continued
Where Will Future Oil Production Come From and How Can Investors Profit Today?
If you can say with assurance why oil prices are US$127, you are more assured than most. OPEC believes oil strength is really just U.S. dollar weakness. A stronger dollar means lower oil prices, and probably lower commodity prices in general. There are other theories that seek to explain the high oil price, including a “fear premium,” oil as an inflation hedge, and pure speculation by professional traders.
May 22nd, 2008 | Dan Denning | 0 comments | Continued
Inflation Up… Gold Up… Oil up… Dollar up… Dollar down…
You can’t got to bed these days without waking up to higher prices for everything. Crude futures in New York hit nearly US$130 overnight, and now everyone is wondering what’s next. US$150? US$200. Even our fish is wondering. He darted back and forth acrosss the tank this morning as we both watched the overnight report from New York on TV.
May 21st, 2008 | Dan Denning | 2 comments | Continued
