Columbia International Affairs Online: Policy Briefs

CIAO DATE: 09/2008

PolicyWatch #1300: The Consequences of $100 Oil

Simon Henderson

November 2007

The Washington Institute for Near East Policy

Abstract

Over the next few days, oil is likely to break the $100 per barrel mark -- a price that will further raise U.S. consumer costs and conflict with economic measures such as the October 31 interest rate cut. Ironically, good news, such as predictions of greater economic growth, is just as likely to push oil prices above $100 as bad news. In either case, the price spike means both continuing danger and new opportunities for U.S. policy in the Middle East.