OPEC
Adbdullah Al-Shihri with the Associated Press writes about the recent rise in oil prices. Yesterday, crude oil prices rose to over $50.00 a barrell in Japan and just lower than that in the US. With the continuing rises in oil prices, even OPEC (organization of potroleum exporting countries) is getting into the action. They are raising oil production in order to lower the price. The problem with the recent rise has been its effect on the economy. Gas prices are hurting airlines that are already struggling. Not to mention, international trade could be effected if prices get to high. The cost of oil could make it too expensive to ship goods intercontinentally. Furthermore, the rise in prices could effect the individual consumer enough to put the economies of the world into tailspin. However, it is reasuring to see international organizations like OPEC getting involved. But is it too late.
3 Comments:
At 5:38 PM, priestdarko1 said…
I have always heard people talking about the price of gas going up and complaining about it. What I love is the fact that these are the same people who ride around in tanks(SUV's, big trucks, etc.). These prices have been pretty high for a while now and I know I havent driven around any less. Oil has become a necessity and people are not gonna consume any less. I heard in another class that gas prices in Europe were up to $5.00/gallon or something like that. The reason was because the government taxes gas so heavily. I guess that they're more environment friendly and use vehicles that are a lot more efficient when it comes to gas. If U.S. companies and more importantly consumers would demand it we could use less gas by better efficiency. But, as long as status is, in part, determined by how large of a vehicle you have we will just have to deal with high gas prices. Don't know if this had much to do with your article but just thought I would say my spill.
At 2:59 PM, Sean said…
To see the change in REAL oil prices go here:
http://www.wtrg.com/oil_graphs/oilprice1947.gif
One of the largest reason oil prices are increasing:
Growth of Developing Countries.
As China and others continue to grow their demand will increase; this will spur innovation.
At 9:36 PM, Stephanie Mc said…
There are so many articles out there on rising oil prices and it's effects, but I can't seem to find as many on the causes of this rise in price. Does anybody really know? Thanks, Sean for your comment because that is exactly what I was wondering when I finshed reading this blog. What is the cause, and what can be done, if anything, to help ease the rising prices?
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