A Funny Thing Happened To Oil Prices When Nixon Killed The Gold Standard | Zero Hedge.
For the past 150 years, crude oil prices have varied between around $10 per barrel and around $120 per barrel. For many decades, oil prices were relatively “stable” but a funny thing happened in the early 70s and everything changed – whether coincidental or causative the linkages between the oil crisis andNixon’s Gold-Standard-busting of Bretton Woods are clear in the chart below. Goldman expectscontinued high oil price volatility with risks skewed to the downside as the market searches for a new equilibrium… and a period of macroeconomic adjustment to structurally lower oil prices. Is oil adjusting to a new ‘gold-standard-esque’ normal?
“Stabilitee”
As Goldman noted back in July…
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