The price of crude oil has jumped as high as $135 lately, up from $87 in early February. The news encouraged some Wall Street analysts to suggest oil might approach $200 before long. In fact, that's quite impossible: The world economy can't handle current energy prices, much less a big increase.
Which in turn means that oil prices will fall.
Alan Reynolds believes the high prices for oil - which, of course, translate into higher prices for almost everything - cannot remain at such high levels. Let's hope he's right. The markets will ultimately determine the price for oil unless our friendly politicians decide to come to our assistance. If (when?) that happens, all bets are off.
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