Real oil prices from 1980 to 1982

Journal Article · Sun Jul 01 04:00:00 EDT 1984 · Energy J.; (United States)

DOI:https://doi.org/10.5547/ISSN0195-6574-EJ-Vol5-No3-8· OSTI ID:6485588

Huntington, H G

In the early 1980s, soft world oil markets were accompanied by two important and unforeseen world economic developments: stagnant economic growth and an appreciating dollar. In most markets, widespread excess capacity would place significant downward pressure on prices. While the price of oil, in dollars per barrel, has increased more slowly than the US inflation rate since 1980, this trend by itself is not indicative of falling real oil prices worldwide. A constant oil price denominated in dollars per barrel could represent an increasing real cost for many countries if the appreciation of the dollar was more rapid than the increase in other goods and services. OPEC's insistence on a relatively constant price in dollars during the 1980-1982 period would then represent an agressive pricing strategy, given the slack market conditions. For this reason, it is important to consider the effect of past appreciation of the dollar on real world oil prices. These trends are discussed. 12 references, 6 tables.

• Research Organization: Stanford Univ., CA
• OSTI ID: 6485588
• Journal Information: Energy J.; (United States), Journal Name: Energy J.; (United States) Vol. 5:3; ISSN ENJOD
• Country of Publication: United States
• Language: English

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COST
ECONOMIC DEVELOPMENT
ECONOMY
ENERGY SOURCES
FOSSIL FUELS
FUELS
GLOBAL ASPECTS
INFLATION
NORTH AMERICA
PETROLEUM
PRICES
USA