The end of the era of cheap oil

The price of oil is at its highest level for nearly a decade. Since the end of the Gulf War in 1991, the per-barrel price of crude has traded below its historical average of around $20. And it’s no coincidence that during this time the global economy has enjoyed almost unparalleled prosperity. Low energy prices have allowed new-paradigm economists to declare inflation dead. It may be stirring in its grave. And while industrialized nations are less dependent on oil than in the past, it’s importance in transport is still enormous. No-one is sure where the oil price goes from here, nor what the consequences might be of a sustained price rise. Jonathan Brown reports