Thursday, April 21, 2011

How High Oil Prices Causing World’s Economy

oil pricesOil prices have been increasing at an alarming way now a days. The prices of petrol have been increased up to $135.09 per barrel. In this regard, the Wall Street has confirmed that the heavy crude oil and gasoline prices have affected the demands and supply of the consumers and investors and they are suffering badly from fulfilling their demands. Therefore, high oil prices have increased the over all prices of all other kinds of consumer commodities such as wheat, rice, oil, vegetables, meat etc.
Meanwhile, the economists are saying that the inclusive demands from states like India and China would exceed supply. In this way, a weak dollar would also enhance the oil prices per barrel more and more.
oil pricesEconomists confirmed that there are several factors of high oil prices all around the world. In this regard they are of the view that one of the major factors of high oil prices is inflation all around the global markets. The economists have argued that inflation is the result of over all slumps in the world trade markets.

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