We are in an era when worldwide oil production is having a hard time keeping up with worldwide demand.
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Why Oil Is So High When The World Economy Is So Low
Every day, we read headlines about the eurozone crisis, the anemic growth of the U.S. economy, and a slowdown in the rate of growth in the BRIC countries, notably China and India. This begs the questi…
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3 comments
Patty Rose says:
August 17, 2012 at 11:46 am (UTC -7)
The economy is so low because oil is so high (not entirely, but it's not helping)
Michael Gentile says:
August 17, 2012 at 12:22 pm (UTC -7)
How is inflation not part of this?
Chris George says:
August 17, 2012 at 12:27 pm (UTC -7)
+Michael Gentile Taking fiat out of the loop, oil is pretty cheap.
http://www.incrediblecharts.com/economy/gold_oil_ratio.php
The easiest way to eliminate inflation from the above charts is to express the two prices as a ratio. How many barrels of oil you can buy with an ounce of gold: