Oil Hits Inflation-Adjusted High

The WSJ reports that oil is at an all-time high even after adjusting for inflation.

Crude-oil futures have topped the inflation-adjusted high set in April 1980, as the dollar’s descent continues to send investors into the commodities markets.
Light, sweet crude for April delivery traded as high as $103.95 a barrel on the New York Mercantile Exchange, topping a 1980 trade of $103.76 in 2008 dollars. The April contract recently traded at $103.59. Brent crude on the ICE futures exchange was trading up $1.72 at $101.82.
The 1980 record predates the creation of the crude futures market on Nymex, and represents a deal on the cash market.
Oil began to take off Monday morning after the U.S. dollar fell from a stable position overnight against the euro. Shortly after 9 a.m. EST, the dollar hit a new low, and oil began to rise rapidly. A fresh record for crude in real dollars came minutes later, and deals above the 1980 high were completed at about 9:55 a.m. EST.
“It doesn’t look like it’s going to come down anytime soon,” said Phil Flynn, an analyst at Alaron Trading Corp. in Chicago.

Posted by on March 3rd, 2008 at 1:00 pm


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.