CLUNK — The price of an OPEC barrel dropped to $97 this week. That is the lowest daily price since mid-April of last year. What’s more, the price has been below $100 (with the exception of two days) for the last three weeks. It hasn’t been below $100 that long since the summer of 2012 whe it stayed below $100 from June 1 to July 16. But that doesn’t necessarily mean much (or anything). The average price for all of that year of 2012 was $109.45—the highest yearly average ever. Once again we caution: Watch the long-term average, not the daily show. The daily price does matter if you are playing the commodities market. But the monthly average is more important—and, in the end, the annual average is most important—if you are looking at the impact of the oil price on the economy and on Iran’s national budget.
