$100 a Barrel–or $200?

Gwynne Dyer
Published: Wednesday, 08/01/2007 12:00 am EDT

Nine of the last 10 serious downturns in the world economy followed a spike in the price of oil, and we are heading for another spike, with oil back up near the peak of $78.40 a gallon that it reached almost exactly a year ago. A record number of options contracts are now being sold that entitle customers to buy oil in the future at $100 a barrel. That tells you where the inside players think the price of oil is heading, since those options will only be of value if the price were actually above $100 a barrel.

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