Can High Oil Prices Be Good?

World oil prices crossed $40 a barrel in mid-summer, and have since climbed to the mid-$50's. Today's oil prices are still only two-thirds the real peak reached during the Iranian Revolution of 1979, and future markets expect the oil price to fall back and settle at perhaps $45 a barrel. But the current high level of oil prices has led forecasters to start reining in their expectations for economic growth.

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