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Eyes of World on Price of Oil; $100/Barrel Predicted by 2010
It is no coincidence that from 1973 to 1982, a period in which oil prices rose from below $5 a barrel to nearly $40 a barrel, was one of the most turbulent times in US economic history. Inflation soared into double digits, 10-year Treasury notes yielded 16 percent and the economy experienced three recessions. Oil-driven inflation is lying ahead and oil prices are likely to rise to triple digit territory -- $100 a barrel at a minimum, and probably higher -- by the end of the decade and possibly sooner. Inflation ultimately is likely to reach levels well into the double digits. The interactions of these two factors will establish the parameters of the entire investment environment for the next decade or longer. To stay Ahead of the Curve, every investor needs to watch oil, tracking the direction of oil prices at any given time and tailoring their investments to fit with what oil dictates.Posted by: Mark Espinola 2004-06-05 |
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