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By Capitalist (anonymous) | Posted August 06, 2008 at 14:24:53
adam2,
According to the figures you provided, oil prices have increased by 380% not 500% in the past five years. This is the formula for calculating a percentage:
((120-25)/(25))*100 = 380%
In the past year, oil prices increased by (again according to your figures) 60% not 200%:
((120-75)/(75))*100 = 60%
Secondly, data on oil prices exists as far back as 1890. To use the last five years of data and fit an exponential growth model to forecast future prices is completely nonsensical.
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