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Record oil price still below all-time high reached during Iranian revolution

London, Oct 17, IRNA - Oil prices Wednesday continued to nudge Dlrs 88 per barrel, but in real, inflation adjusted terms, the record level remains below the all-time highs recorded in 1980 after the Islamic Revolution in Iran, according to the Financial Times.

The daily suggested that rates would need to further increase to 100 dpb, as some economists have predicted, to break the 37-year old record in real terms.

With the declining value of the dollar, it said that oil prices in euros, sterling or renminbi (Chinese currency), still had to reach highs recorded in July and August last year.

In its editorial Wednesday, the paper compared the current impact to the all-time record following the Islamic Revolution, when it said high oil prices "helped inflict a noxious brew of stagnation and inflation on the industrialised world."

Previous hikes have led to politicians hitting the panic button and journalists cranking out tales of crisis, but it said that it was difficult to current detect any sense of foreboding as stock markets traded lower, but not dramatically so.

The latest upsurge has been linked to fears of Turkey pursuing Kurdish rebels into Iraq and disrupting supplies.

But the Financial Times said that more worrying were falling crude oil and product inventories in the industrialised countries and the rapid growth of Chinese demand.

... Payvand News - 10/17/07 ... --

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