Clarke Posted February 27, 2011 Posted February 27, 2011 http://www.guardian.co.uk/business/2011/feb/27/world-economy-braced-for-oil-shock Melissa Kidd, economist at Lombard Street Research, says the strong demand from China and other healthy economies will mean oil prices will not plummet back down to earth as they did two years ago, after hitting $145 a barrel. "Rather than a repeat of July 2008, where everything just collapsed, it will be this slow-burning monetary tightening," she says, predicting that it will be 2012 before these anti-inflation measures really start to bite, choking off demand in the emerging world and bringing the oil price back down to earth. In the west, meanwhile, where consumers and governments are still working off the legacy of the noughties boom, the story is different. Where demand is already fragile, and workers are unable to push up their wages to compensate for the rise in energy prices, the oil shock could simply act like a tax – yet another rising cost that hard-pressed households have to bear. With a fixed budget, they are forced to respond by tightening their belts. So in the long term, the impact of rising oil prices is deflationary: it depresses demand. =============================== Remember mid 2008, the $140+ per barrel times ? Not too good for anyone were they .. the oil monster seems to be creeping back Just look at the last month's chart. $20 per barrel rise last week coming because of Libya's unrest. Then they attacked and temporarily shut down Iraq's largest refinery. Imagine what would happen if there was trouble in Iran/Russia or worst of all Saudi Arabia. Then there's the increasing consumption because of the growing economies and the recovery in the developed nations :nervous:
punjabi_khota Posted February 27, 2011 Posted February 27, 2011 Good for me. Makes the case for me to walk and take the subway rather than drive, thats 40 minutes of walking per day :yes:
rkk101 Posted February 27, 2011 Posted February 27, 2011 Good for me. Makes the case for me to walk and take the subway rather than drive' date=' thats 40 minutes of walking per day :yes:[/quote'] i like ur style...
Cricketics Posted April 15, 2011 Posted April 15, 2011 I am tired of paying 45 bucks every other week
kabira Posted April 15, 2011 Posted April 15, 2011 you guys are worried about making $4 ofr a gallon, thats like $1 a liter only 43 Rs... Check out price in India.
Clarke Posted April 15, 2011 Author Posted April 15, 2011 Actually most working desis in North America wouldn't care, their salaries can easily cover the additional $50-100 expenditure. The common man though, is affected everywhere because of inflation. An approximate prediction by the economist suggests that a 10% increase in price results in 0.25% reduction in GDP growth. All those numbers, other than the fact that we don't have alternatives with demand expected to grow every year and no major oil field discoveries.
IKnowU Posted April 16, 2011 Posted April 16, 2011 wow you americans have it bad :hehe: Us ozzies are "only" still paying around $1.5 Australia is in middle of no where too...........
Dravid Posted April 19, 2011 Posted April 19, 2011 shyt.... i drive about 140 miles( going and coming) twice a week to play cricket, one of practice and one for match...saaala, practice bhand kerna padega:nervous:
veer Posted April 19, 2011 Posted April 19, 2011 wow you americans have it bad :hehe: Us ozzies are "only" still paying around $1.5 Australia is in middle of no where too........... per gallon? or per liter?
IKnowU Posted April 20, 2011 Posted April 20, 2011 per gallon? or per liter? Per litre....... If its per gallon..........then We ozziez iz being ripped off then :(( :banghead:
Ram Posted April 20, 2011 Posted April 20, 2011 This is stupid.. Why do I have to pay more petrol, if Colonel Gaddafi chose to have a crazier hairstyle today or if a random Hamas leader was assassinated by an Israeli UAV? We have seen this movie once before in 2008 and back then, it didn’t have a happy ending. Though I must say, as with most things, the American outrage at the increasing gas prices stands out for the sheer hilarity. Whenever the prices cross $3/gallon, all the radio and news stations send out 1000s reporters to all the filling stations, interviewing people with long faces whining how it now costs them $5 extra to fill up their tank. If we had muted the audio and showed you just the video of those clips, judging from the reactions, you’d think somebody’s pet died or something. Do these people even realize that, halfway across the world, households with a monthly income of 10,000 – 15,000 rupees pay close to 60 rupees, for every litre of petrol. That’s a price of petrol to income ration of .006. If you apply the same math to US of A, every gallon of gas must cost $120! Can you imagine the outrage if even a third of that was true?!
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