Will We Hit $100?

Such forecasts, once the province of the enviro-fringe, now come from the likes of Goldman Sachs. Here’s why.

NEWSWEEK – The first oil shock of the 21st century is now upon us, even if it has not (yet) hit the global economy. This time, the early fallout is measured in largely political terms

It may be only a matter of time before the economic shock arrives. Predictions that a $10 hike in the price per barrel of oil would shave half a point off world growth rates have yet to pan out, but that doesn’t mean they won’t. Our happy surprise that global growth has yet to slow misses the catch: if the economy can run with a $70-a-barrel burden on its back, the price is less likely to fall. More and more companies are tacking on fuel surcharges, and the specter of petrol-fueled inflation is rearing its ugly head.

Worse, there is an increasingly strong case, perhaps even an emerging consensus, that we are heading for a new price reality