Oil: Lower price than 150 years ago – Deutsche Bank

Strategists at Deutsche Bank have raided their long-term database to put the recent price of oil into some perspective.

Key quotes

“In nominal terms, over the 150 years for which we have data, there’s never been a negative price print before. This is stunning as it basically says that a barrel of oil earlier this week was effectively cheaper than it was in 1870.”

“The spikes seen in the 1970s and before and just after the GFC were the exceptions to the long-term inflation tracking trend. Interestingly, the 150-year average real price of oil is $46, a level we dipped below at the start of March in this part of the cycle.”