Why oil isn't so expensive after all

Oil may be at historic nominal highs, but it's actually fairly cheap. In fact, a pint of raw crude would cost less than a pint of milk, beer or mineral water. That means there's plenty of upside left in the oil price.

I was reading an email form an ex-colleague in America this morning. He was arguing that the oil price would hit $300 a barrel should the US invade Iran. This seems more and more likely in my mind as the rhetoric ratchets up - and I hold my head in despair.

I fear that an attack on Iran is becoming a real and present danger, despite US government denials. After all, I remember Donald Rumsfeld saying on TV soon after 9/11 that the US government hawks would not use the terrorist attacks in New York as an excuse to attack Iraq. We all know what happened next.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.