Oil prices could ruin economic growth
by Stewart Douglas
Oil price rises beyond $80 a barrel are inevitable, and will cause a profound effect on the US economy, a statement released today intimated.
US Energy Secretary Sam Bodman stated that prices in the region of $80 a barrel could hinder economic growth, and lead to inflation in energy prices and consumer products.
Analysts have forecast $80 per barrel prices with some certainty, as output problems across the world and the perceived limited supply have caused a demand-intensive marketplace, paradoxically with spare capacity.
The US Energy Secretary urged OPEC and major worldwide nations to step up production, which is still well short of capacity despite prices reaching a record high during the week.
Many analysts have blamed a shortage of oil in relation to world demand for the wildly escalating prices over the last few weeks, a claim that OPEC has fiercely denied.
Rapidly growing demand from China and India, as well as general worldwide growth trend have been thought to be contributing factors to the escalating prices of crude oil per barrel.
The OPEC perspective was further emphasised by Qatar’s Oil Minister Abdullah al-Attiyah, who claimed there is currently no shortage of crude oil on the world market.
OPEC, responsible for 40% of crude oil production, are set to meet later this quarter to decide the future of oil production, and whether or not to increase production in order to better meet their $65 barrel price tag.
Oil prices have shown steady growth over the last few months, particularly spurred on by problems in US oil refineries and growing demand from newly industrialised Asian nations.
Analysts’ forecasts show continued rises over the course of this year, which is likely to have a drastic effect on global economic growth.
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First, stop purchasing Chinese junk, contaminated foodstuffs and other crap immediately! This will have the effect of slowing down their growth and energy demand. When are Americans going to wake up and see that China and Walmart are the ENEMY! Everyday low prices are bankrupting the American working class. Second, demand congress put a stop to the out of control energy futures market. The parasitic hedonistic hedgers and speculators are systematically raping the consumer on a daily basis. If the politicians will not reign in these traitorous scumbags then the public should hunt them down and do what is required to stop them. A few less futures traders in the country would do wonders to stop the wholesale rape of the consumer in all products which are affected by fuel and energy costs. It is time for the peasants to take a stand and storm the Bastille again!
Comment by WP — August 3, 2007 @ 9:50 pm