Rising oil prices.. Your opinion?

Philippines
July 17, 2008 9:28am CST
What is your opinion on rising oil prices? I think it's too much because gasoline in middle east is so cheap. How come it's so expensive in different countries?
1 person likes this
3 responses
• Philippines
18 Jul 08
Oil is affected by the US economy crunch. Dollar continue to fall that affects the international trading and as-a-matter-of-course makes the price of rice hike to the max. Middle east is succumbed to trade its oil to a particular nation with rice on a government to government transaction only. That sucks the Philippine for we are the largest rice net importer in the globe. The threat was, middle east is losing its oil reserves that's why many nations are on wary developing their biotechnology programs and biogas as an alternative solution to this global threat.
@arcideaco (1259)
• Singapore
17 Jul 08
The inflating oil price will cause a series of domino effect to many other sectors like transport, shipping, food and etc. It is because most of the operations of these businesses required the use of petrol. Petrol on the other hand is refined from crude. From the recent peak at $147 had caused many countries around to world to step on their economy by increasing their prices or reducing subsidies which had caused unrest at a few places. The reason why it is so expensive in my very humble opinion is because of two main attributing factors: 1. Political unrest and uncertaintly with countries in the Middle East and Nigeria, another major oil exporter. Iran, if I am not wrong is the second largest oil exporting country. 2. Forward commodity trading and derivative had caused the price kept going upwards. Traders and institution thinking that the music never ends amidst the unrest with oil exporting countries continue to bid up the price causing a euphoric buying spree which led to the peak. Institution buying really high up till it seems that the price is extremely overbought and it is currently showing a strong resistance as stock markets conversely is taking the heat and has been falling. Near term, price of crude should drop significantly before treading higher amid more uncertainty and markets should resume recovery for these two weeks. Cheers.
@egdcltd (6710)
17 Jul 08
In the UK it's expensive because something like 2/3 to 3/4 of the price is tax.