Andurand himself sees a process of the economy acclimating to higher and higher numbers.
So I think it's, you know, there's a lot of recency bias generally in people's minds. Generally we get used to recent prices. And at first we think $100 is expensive. We complain, I don’t mean we, like people in general complain. And then they get used to $100 and then they complain at $120 and then they complain at $140. But they get used to higher levels over time. So then it's a question of, is it still worth using this oil? You know, and if you look at since 2008, $150 then is $220 today in today’s dollars, if as an inflation measure, you take the global GDP deflator, then it's $220. So the way I think of it is, is it more bullish today than then? Yes, it's more bullish today than then.
This article was provided by Bloomberg News.