Real Oil Prices Are 36 Below

#CKStrong

We dedicate this one to CK, who sparked our interest.

The following chart illustrates the”real” oil price — the average monthly cash price of West Texas Intermediate Crude deflated by the Consumer Price Index. Indexed so that January 2000 = 100. 

At the Tuesday closing price, the real price of crude was 36 percent below its peak in June 2008, when speculation was rampant as it is today.

In other words, real crude oil prices would have to increase 56 percent from the Tuesday close to top its 2008 peak.  Surprised?

It behooves the regulators to increase the margin requirements on commodity futures, especially wheat, which, if it continues to march higher, will most certainly cause global food riots.

 

We Tweeted this out yesterday in response to reports that the Russians were warning of $300 per barrel crude prices.  

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.