Got Those Opec Blues Again" and "Rational Exuberance

Got those OPEC Blues Again and Rational Exuberance SUMMARY Since March of 1999, when the value of West Texas Intermediate crude oil was at $13 a barrel, we have seen a steady increase in prices in all phases of the economy. OPEC, the organization that is largely responsible for reach production goals in the Middle East, was under fire to honor ways to increase prices. OPEC members at this time pledged to knap back the supply of crude and push oil prices higher. (Business Week, 48) The results were disclose than most expected: crude oil prices were almost $27 a barrel on November 23, 1999, the highest price since the 1991 Gulf War. (Business Week, 48) The engage for oil is outpacing current supply by 2.8 million barrels, causing some in Congress to push for relief by tapping into the Strategic Petroleum Reserves. (Business Week, 49) The rapid increases in prices have had a welcome effect on Big Oil, however. Companies such(prenominal) as BP Amoco, Chevron and Royal/Dutch Shell throng have posted 15% increases in earnings (Business Week, 49) This heading is expected to continue, with L Bruce Lanni, an analyst at CIBC World Markets Inc. noting, I see clear sailing ahead for the next devil to three years. (Business Week, 49) Happy days are here once more!

This quote, noted by Jodie Allen of U.S. News and World Report, refers to the booming U.S. economy. (Allen, 71) The business market, as of November 8, 1999 was flying high, posting strong gains, prompting inflationary fears and a hard once-over of the situation by federal Reserve Chairman Alan Greenspan. However, the numbers are extraordinary. The Gross internal product surged at an annual rate of 4.8% in the terzetto quarter of 1999. The employment cost index, which measures total compensation paying(a) to workers in a broad sampling of jobs, rose by 3.1 percent over the past 12 months. (Allen, 71) But, cautions Princeton economist Alan blinder, this is a change in the measurement system, not in the reality.... If you compulsion to get a full essay, order it on our website: Orderessay

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