Oil Could Hit $100 A Barrel: Why This Would Cripple The Economy
Some experts predict oil prices will breach $100 a barrel by year’s end and that gas at $5 a gallon will follow. Heating oil will jump as well—bad news for homeowners this winter.
This segment of What’s Ahead tackles the question: Will these horribles happen?
The current surge in oil prices is the result of strong, post-pandemic demand outstripping supply. Moreover, the Biden Administration is worsening things with its misbegotten war against fossil fuels.
But this shortage is temporary. Major oil producers like Saudi Arabia will be boosting output.
The real danger is if the rest of Biden’s binge-spending schemes pass—the Federal Reserve will be printing huge amounts of money to pay for them.
That will kindle a white-hot fire of inflation.
This is what the Fed did in the 1970s, when we saw oil rocket from $3 a barrel to $40. When inflation was conquered, the price of oil collapsed.
If our central bank behaves like that again, we’ll get oil at $100 a barrel—and a lot of other bad things as well.
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