Record Oil Prices!?! Not Really. May 4, 2006Posted by Zack W. Handley in Enough Already, General Musings.
As Ron Bailey writes:
With some headlines blaring about "record oil prices," a bit of perspective is in order. It is true that in nominal dollars, the price of crude oil has never been higher. However, in inflation-adjusted terms, the picture looks somewhat different. It turns out that the price for a barrel of oil peaked at about $98 in December 1979.
Still oil prices have tripled in the past four years, but the economy nevertheless chugs along.
[T]he price of oil would need to double from today's $70 per barrel to have the same impact on the U.S. and world economy that prices had during the 1970s oil crisis.