Slide 3 of 15
Notes:
This graph shows the world oil price depicted as the average price refiners pay for imported oil, in inflation-adjusted terms. Since US refiners buy crude oil from so many different countries, This is a good proxy for a “world oil price”. It is similar to the OPEC basket price.
In real terms, prices are a bit above the recent historical norm, but they are much higher than experienced just a year or two ago.
Of course, oil buyers don’t pay with “inflation adjusted dollars”. In nominal terms, prices have been higher only a few other times in history.
