Note to world: don’t compare oil prices without adjusting for inflation.
Oil prices soared to a new record high over $59 a barrel on Monday, extending last week’s surge as a threat against Western consulates in OPEC member Nigeria jolted traders already worried about tight supplies.
Oil prices climbed more than 9 percent, or nearly $5, last week, drawing additional buying interest from trend-following hedge funds as they surpassed the previous early April high.
Boston.com: Oil scales new peak, eyes $60 on demand
What Reuters fails to mention is that $60 in 2005 isn’t worth $60 in 1981. In 1981, oil prices reached their all time high of $39 (1981 dollars). $39 in 1981 was worth what $94.48 is worth in 2005. So you tell me… which is bigger: $94.48 or $60.00?
What we have now is a 13-year peak. This is the most that a barrel of oil has cost, in real dollars, since 1992.