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The David Lin Report · Monday, July 13, 2026

Oil prices are a simple, though imperfect, indicator for inflation and rates

Ron Butler acknowledges that using oil prices as an indicator for inflation and interest rates is a simplification but the easiest approach. He argues that sustained high oil prices, like WTI over $100 a barrel, would inevitably lead to inflation.

The tape

3 quotes
Is it too simplistic a measure to use oil as an indicator of where rates are going to go?
David Lin
Or is that probably just the easiest way to go about it for now? Just the easiest. It's not perfect. You're right. But it's just the easiest.
Ron Butler
I mean, there's absolutely no one in North America would think that if WTI stays over $100 a barrel for a long time, that we're not going to have inflation.
Ron Butler
Heard on The David Lin Report — “Housing Is Now Crashing: No Rebound For 18 Months Warns Expert | Ron Butler, published Monday, July 13, 2026. Heardvine summarizes and quotes with attribution and timestamps, and links to the original everywhere.
Transcribed via Gemini audio transcription · $0.02