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Today's chart provides some long-term perspective on the price of a barrel of crude oil with a long-term chart of inflation-adjusted West Texas Intermediate Crude. Today's chart illustrates that most oil price spikes coincided with Middle East crises and often preceded or coincided with a US recession. The logic behind this is that a Middle East crisis can potentially disrupt an already tight oil supply and thereby drive crude oil prices higher. Also, rising oil / energy prices can, among other things, increase costs within the global economy's supply / distribution chain and thereby contribute to inflation which can in turn encourage governments to halt or reduce any plans to stimulate the economy. As a result of the escalating crisis in Syria along with fears that the crisis could spread to other nations, crude oil prices have begun to spike.

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Quote of the Day
"Oil is seldom found where it is most needed, and seldom most needed where it is found." - L. E. J. Brouwer

Events of the Day
September 02, 2013 - Labor Day
September 06, 2013 - National Grandparents' Day


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