Fears raised over higher price of oil

[dArKeR]

Higher oil prices have hurt the global economy and could further hamper growth, bolster inflation and increase unemployment over the next two years if prices stay at their current levels, according to a study by the International Energy Agency released on Monday.

"World GDP growth may have been at least half a percentage point higher in the last two or three years," the study found, "had prices remained at mid-2001 levels."

If oil prices stay at their current level of more than US$35 a barrel, more than US$10 a barrel above their level of three years ago, "world GDP would be at least half of 1 percent lower -- equivalent to US$255 billion -- in the year following a US$10 oil price increase."

In New York, crude oil for June delivery rose US$0.83, or 2.2 percent, to US$38.21 a barrel on Monday.

http://www.taipeitimes.com/News/worldbiz/archives/2004/05/05/2003154246

[brokensymmetry]

1. You ain't seen nothin' yet.

I suspect we're going a lot higher. Soon...

[Doosh]

2. I've never seen gas prices in my town so high

every station at $1.95 or higher

[DieboldMustDie]

3. China's GDP has been growing by leaps and bounds...

with help from an influx of U.S. capital of course. As their demand for petroleum increases the effect on oil prices is likely to be huge. I wouldn't expect anything big this year, but before the decade is out...
:nuke: