Wednesday, 6 October 2004

Oil blues

Oil prices broke today magic level of 50 $ a barrel in New York futures market. There's almost certanly continuouse trend of higher oil prices.
Some may argue it is not oil shock, but it's definitive goodbay of cheap oil.
Indeed, by some historical benchmarks, notable oil crisis in 70's, current oil hike isn't as severe.
Many experts and so called "experts" ( me ) ;) now are trying to explain causes and glitches for current situation on oil markets.
IMF said in an official report that higher oil prices are likelly to stay during this decade.
Any prolonged situation of high prices could and will cut economic growth.
Really great article about these issues found in newspaper The Independent written by Bill Robinson who is director of economics at PricewaterhouseCoopers.

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