Friday, June 06, 2008

Oil may hit $200 per barrel


The price of oil has hit an all time high of $139 per barrel and some fear it may rise further still. The knock on effect has already been felt at the pump where motorists are paying exorbitant prices for fuel. The average shopper is also seeing the effect as the price of food rises significantly. A 10 kg sack of rice costing around £10 less than six months ago now costs in excess of £15. The price of wheat has also soared and in turn forced up the price of basic foodstuffs like bread and pasta. Meanwhile wage levels remain the same forcing many families across Europe and the US to tighten their spending. And it’s not just in the developed world that the pressure is being felt. Asia, the Middle East and Africa are all feeling the effects of the rising oil price and food riots are becoming more frequent.

Fears of conflict, and the fear of a US recession were described by the BBC to have helped push the price of oil up. Belligerent statements by an Israeli minister against Iran were said to have had some effect on the stock markets and there were worries that the price might hit $150 a barrel by July the 4th [CNN]. Some believe the price may even rise above $200 [BBC].

The price rises have prompted motorists, fishermen and lorry drivers to come out in protest. On Wednesday hundreds of motorcyclists rode in convoy to raise their objection to the increasing fuel price. In Italy, Britain and France there have been protests by lorry drivers and fishermen over the last few months. But on Tuesday anger spilled over as fishermen converged on the European Parliament in Brussels. A European flag was set ablaze and some protestors threw flares at police. Riot police responded with water cannon and baton charges [BBC]

1 comment:

Anonymous said...

When it comes to oil, there are many contradictions. Like I heard how congress wanted to drill in Alaska. But according to research, we would got through that oil within a years time. THe amount we consume is ridiculous as well. Too bad they don't have something like B5 oil for our cars. Oilheat users can use that right now. It produces NO greenhouse gases, reduces emissions, and it helps CONSERVE 400 MILLION gallons of oil. That's the key there, CONSERVATION. That's what I've learned most while working for NORA. Conserve and be green.