Killing Me Softly With This Oil
Oil today broke through the $145 per barrel after European Central Bank raised Eurozone interest rates by 0.25% to 4.25%. Their counterparts in the US, the Feds, have their hands tied with a weakening economy.
Keen on controlling inflation in Europe, unlike the Feds who have turned to fudging with the numbers, the ECB has decided not to keep their rates unchanged like the Federal Reserve Bank.
You've got to give it up for the ECB which is more concerned of over burdening its populace. With the US housing situation now in a free fall spiral and the coming presidential elections, the Fed has been caught between a rock and a hard place. Inflation kicking consumers on one hand and slowing economy threatening to bankrupt business and sending unemployment up.
You can be sure now that the US has caught a bad cold, the rest of the world is going to be dragged down with the worlds largest economy. Of course, the developing countries will bear the brunt. Reduced remittances, inflation, high oil prices, expensive imports and reduced trade will definitely rattle these countries.
PS. As of yesterday, the price of regular gasoline at my local gas station was $3.99 per gallon. I expect we'll break through the $4 mark today.
6 comments:
Yesterday we drove around looking for a better deal and the best we could get was $4.09/gallon. I'm wondering how most folks are doing in Kenya. But I hear it's cheaper to fly than drive from Nairobi to Mombasa.
PKW, You are cracking me up. Europeans are paying $12 per gallon and they are over-taxed. They'd pay $5 for $4 gas.
High gas prices will force us to re-think energy alternatives. I can't wait to drive something else without continually filling up!
PKW: fuel prices at 100/+ litre [$6.92], but I think the increase has not been as dramatic as in the US who have gone from $1 gas to $4 gas.
- as for Mombasa cost, that's an interesting equation to work out
Interesting times indeed.
The US economy (world biggest consumer) is in recession and oil just keeps climbing.
The oil menace is everywhere. I'm sure Osama gets richer every time a barrel of oil costs more.
Meanwhile, oil prices at the local petrol stations go up even if it's just a hoax or rumour on CNN and CNBC about price hikes.
It's man eat man society, I tell you.
Cheers!
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