Ahh, that fateful phrase.
I'll keep it short and sweet here, and I'm likely not offering anything that you haven't heard before, so think of this more as a friendly reminder. For the seven years from 1973 to 1980 average annual oil prices rose about 690% or roughly 34% per year during that period. After the peak in 1980, oil spent the next eight years in decline and fell a total of 60%.
Over the past 10 years, the average price for oil is up around 720% (using average price for 2008 as opposed to current price), or roughly 24% per year.
I can already hear people saying that it's different this time because it's not an artificial supply side shock as in the 70s. Ok, could be... but I'm certainly not banking on it.
-AvgJoe
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2 comments:
Very interesting perspective. Only time will tell but I sure wouldn't mind a 60% decline over the next eight years.
The Hoss
And I dont think that we can have any control on this price increase in future.
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