Oil, what the hell?
30 06 2008
As most of you are hearing, Oil prices have been surging day after day in the past 2 years or so. even though it’s justified that oil prices will go up I didn’t see it happening that it will reach a price of as high as $143 per barrel and expected to reach $170 by year end according to some analysts.
What i’m wonder is how people “especially” in the US and Europe are handling that. I remember when I first moved to the states back in 2001 I used to pay something around $25 to fill my car tank, and 5 years after than in 2006 I filled the same damn car with the same gas grade for $55, that’s 2.2 times the price in just 5 years or less! According to today’s gas prices (where oil is trading at $143) it would cost me a little more than $70 to fill the tank. oh and it’s not an SUV, it’s the BMW 325Ci.
This high oil prices might be good to some economies such as the members of OPEC, but is it really fair for the rest of the economies and consumers?
these oil prices arent even good for opec countries as it is the oil price itself which is the cause of the record inflation that even opec countries are suffering from. while alot of the world’s money is coming here, alot is also going out to import stuff into this region cos nothing is made here.
so rents are higher cos it costs more money to bring in materials to build new buildings, food is higher cos of transport costs, fertiliser costs, packaging costs, etc.
politically, its also the source of the tensions between government and parliament.
it might be too early to say but this price increase might be the worst thing to happen to this region in a long time. people in the west will adapt as they did in the 70’s, the question is will people here adapt or will they make the governments waste the extra cash they’re making?
skunk: you are right.. and i was wondering the same regarding how will people adapt.. and looking at the previous trend i can only imagine that the government will be spending shit load of money so the population can spend their money on fashion, travel, and more wants..