One issue that has left economists sleepless at nights – the hike in Crude Oil prices! The international market is running at $135.04/barrel as of 23rd May, 2008. Shocking yet alluring!
The commercial airlines industry is highly influenced by increase in fuel prices. The current increase is not only alarming but also thought provoking. The forecasters are raising their reservations regarding the future of commercial airlines industry. According to industry analysts, the contained purchasing power of the masses would limit leisure travel tremendously.
Would the industry be able to survive on diplomatic and official travel!? The answer only time will give.
One must wonder what caused the crude oil prices to reach such highs. It is the speculations and ineptitude of the oil refineries. So, what is OPEC doing to inhabit the situation while the economies of the third world countries are crashing!? Nothing! Yes, absolutely nothing! Qatar thinks, there is no need to increase production, from the usual 300,000 barrel per day, to bring down the prices in the market. No relief in sight for the astounding level of inflation in the third world countries.
The forecasts are saying the crude oil prices may touch an amazing $174/barrel before seeing a decline.
A common man is so over and above the understanding of these economic indicators yet they are taking the grunt.
I wish to hear from common folks, experts and economists. Where we heading and what are the implications of this hike to our future and to our economies?