Column: Oil prices no longer especially cheap after strong rally - Kemp - Reuters:
Oil prices are no longer particularly cheap by historical standards.
Perceptions about prices tend to be over-influenced by recent experience so current prices feel very low to producers used to receiving $60-80 per barrel over the 2018/19 period.
But over a longer time horizon, current prices are not especially cheap, and are only a little below long-run averages over the last few price cycles.
Current Brent prices at just over $40 per barrel are in the 49th percentile for all months since 1988, after adjusting for U.S. inflation (tmsnrt.rs/2V1lJea).
If prices were to settle at this level through the end of the year, the annual average would be just over $40, compared with an inflation-adjusted median of $50-55 since 1973.
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