Quote:
Originally Posted by opendoor
How would increasing the price of oil by 90% (current price -> $160) match the 1,100% price increase in oil they saw from the early '70s to the early '80s ($3.50 -> $39)? The equivalent now would be the price going up 11x to ~$900.
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Where was pricing when we started to ramp up inflation? If you are going to start at the $3.50 it would be disingenuous not to start at the $45 - $55 per barrel we were hovering around prior to COVID. I won't cherry pick the crash as that wouldn't be appropriate either. You also have to remember that the spot market wasn't invented for oil and gas until the late 70's. There really wasn't a market for oil that wasn't controlled by the 7 sisters (~95% of all oil was purchased by them and was thus not reflected of fair market price). All I am saying is I would caution you against drawing parallels between the two because the late 70's/80's was entirely the wild west with Marc Rich at the helm.