Oil at $107

Posted on March 10, 2008 by Lance

Oil hit $107 today and OPEC says it isn’t going down anytime this year. Government endorsed cartel in the oil industry, sigh.

Filed under: Economics, Geopolitics

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One Response to “Oil at $107”

  1. dave nate, on March 10th, 2008 at 12:27 pm Said:

    Lets talk a bit of economics.

    Since a dollar is FIAT and not a guaranteed asset, when comparing any price increase on a good that is globally traded it is wise to compare the increase to other assets that are priced in dollars and are also globally traded.

    I like Gold. It paints the real picture quite well.

    Gold/oz Oil/Barrel
    Mar-00 $275 $27.44
    Mar-01 $275 $23.96
    Mar-02 $300 $20.97
    Mar-03 $350 $30.26
    Mar-04 $400 $33.48
    Mar-05 $425 $47.80
    Mar-06 $600 $55.42
    Mar-07 $675 $52.64
    Mar-08 $975 $100.00

    Even if this was a supply side problem, I fail to see the injustice. Harley Davidson used the same approach. The difference is there was always Honda as an alternative for consumers.

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