I just looked at the price of oil. A barrel of Brent crude currently costs $122. So far this year, the price has jumped $31 dollars - an increase of 34 percent.
There has been some discussion of prices reaching $200. I thought it would be interesting to ask a slightly different question. What monthly rate of growth would be needed in order for the price to reach that lofty figure by the end of this year. The answer is 7.3 percent. The average monthly growth rate for the year so far has been about 6.7 percent.
Could oil reach $200 by the end of the year? It will if it keeps on increasing at the current monthly rate. Or perhaps the oil price, along with other commodities, is the last great bubble, and it is just ripe for bursting.