Telegraph : Many Western investors and politicians have been hoping “cheap crude” would see us through this crisis.
During the first quarter of this year oil averaged $42, compared with $94 during 2008. That has helped dampen inflation by keeping the lid on energy costs to households and firms but, with crude now 103pc above its mid-February low, cheap oil is no more. That isn’t all of the article but it’s the nut of it. Between a declining dollar and increasing demand, the price of oil is rising quickly. It goes without saying that the implications for economic recovery of a rise in the price of oil are pretty negative.
Full Story: Contemplating the Fallout from Increasing Oil Prices - Seeking Alpha
During the first quarter of this year oil averaged $42, compared with $94 during 2008. That has helped dampen inflation by keeping the lid on energy costs to households and firms but, with crude now 103pc above its mid-February low, cheap oil is no more. That isn’t all of the article but it’s the nut of it. Between a declining dollar and increasing demand, the price of oil is rising quickly. It goes without saying that the implications for economic recovery of a rise in the price of oil are pretty negative.
Full Story: Contemplating the Fallout from Increasing Oil Prices - Seeking Alpha
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