Posted on 03/09/2020 11:41:24 AM PDT by Enlightened1
Generally low energy prices are good for the economy. The fear is that a bunch of oil companies will be unable to pay their debt. They borrow a ton of money to finance their oil wells.
At $60 per 750ml bottle, that's $80 per liter. A 225-liter barrel would cost $18,000.
At $75 per 750ml bottle, that's $100 per liter. A 225-liter barrel would be worth $22,500.
A $22,500 barrel of wine is 750x more expensive than a $30 barrel of oil. Or would be, if the relative barrel volumes were the same.
Normalizing:
One gallon of $100per-liter wine = $378.54
One gallon of $30-per-[42-gallon]-barrel oil = $0.7143
At these prices, one equal-volume unit of wine is 529.96x more expensive than oil.
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