It’s true that the price of oil has fallen by over 50% since 2012 but we thought we’d share this graph (pictured right) courtesy of David Zervos – Chief Market Strategist at Jefferies (investment bank).
When you look at it from an inflation adjusted basis and over the last 60 years it’s not as cheap as it feels. Much cheaper than in recent years but not all that cheap in relative terms compared to the period from the mid 1980s to 2000.
Food for thought…
