Is there commodity inflation to spur gold and silver?
*Financial Times, by Javier Blas and Ed Crooks, September 12, 2007
Oil price surges past $80 barrier
“Crude oil prices jumped to a record high of $80 a barrel on Wednesday, as the market judged this week’s move by the Organisation of the Petroleum Exporting Countries to increase production as “too little, too late”.
The jump in oil prices came as other commodities, such as wheat, hit all-time highs at a time when industrialised countries’ central banks are under pressure to hold down interest rates to insulate economic growth from financial turmoil.
US West Texas Intermediate on Wednesday hit an intra-day record of $80 a barrel, above the previous high of $78.77 a barrel reached early last month.
In real terms, adjusted for inflation, oil is at its highest price since the early 1980s, but still well below its peak, equivalent to $109 a barrel in today’s money, reached in late 1979.”
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