Even if it breaks through the all-time high of 2008, oil prices are not high

Although oil prices have risen for 3 years and are approaching the all-time high, international investment banks are still bullish on oil prices, and even if oil prices now break through the high of $150 / barrel in 08, it cannot be compared with the impact at that time, because the Fed has released water several times in the past ten years, according to the inflation range, the current oil price must rise to at least around $200 to be comparable to 08
.

Brent crude is up 54% year-to-date, nearly tripling if you look at its March 2020 low
.
Domestic oil prices, taking Beijing as an example, the lowest price of gasoline No.
92 in March 2020 was 5.
5 yuan, and now the latest price is 9.
01 yuan, an increase of more than 60%.

In recent years, due to the epidemic and the conflict between Russia and Ukraine, international oil prices have only risen but not fallen, and what is worse, the vast majority of Wall Street investment banks predict that they will rise
in the future.
Goldman Sachs also predicted in a report on June 6 that Brent oil prices will exceed $140 per barrel, and the current price is $120, and Citibank, Barclays, etc.
have also raised their expectations
for future oil prices.

The main concern is that earlier this month the European Union will ban insurance companies from insuring ships carrying Russian oil, and traders and shipowners say the impact of the ban is huge because few shipping companies are willing to transport oil
on uninsured tankers.
A decade ago, the insurance ban blocked Iran's oil exports, forcing Tehran to negotiate
over its nuclear program.

The all-time high of oil prices was $150 in '08, and if it breaks through $150 now, is the economic environment worse than it was then?
Because oil prices are settled in dollars, inflation has greatly eroded the purchasing power of the dollar over the years, which was only 3.
84% in 2008 and has now risen to 8.
26%, so $1 in 2008 is now $1.
34
.

From the perspective of inflation-adjusted oil prices, the historical high in 2008 has exceeded $180, and now the world is experiencing a round of large-scale inflation, and the inflation level in the United States, the European Union and other countries has hit a new high in decades, so the current oil price is not too high
compared to history.

High oil prices tend to cause market turmoil, triggering a recession that is likely to follow
if oil prices continue to rise.