With oil prices hitting record highs, and showing no signs of weakening, global consumers are feeling the heat, not to say pain.

So what’s fueling (no pun intended) oil price rises, when analysts are already saying fundamentals do not justify current price levels?

It is thought to be fear of global shortage which is causing speculators to gamble on heavy investment. Political responses? United Kingdom; Wait and see in six months time whether to cancel proposed 2p per litre INCREASE in fuel tax! USA; President Bush is calling for offshore drilling restrictions to be lifted, calling them “outdated”. Which sounds sensible enough, until you factor in trying to lock the stable door after the horse has bolted.

So many things we pay for is determined by oil; Milk and all farm produce, because of wheat and grain, tractors use petrol. Many bathroom related purchases are related to oil, from shower gel to hair sprays. Also domestic energy is severely affected, with many of my clients now saying they cannot afford to heat water in the summer, because summer usage limitations has to effectively enable greater winter consumption. So, we are nations who can go to war in the middle east at the drop of a hat, yet we are prepared to allow people to do their washing up in tepid water…

I tend to think of the younger generation…. How much will today’s school children be expected to pay for petrol? £5 per litre? Ridiculous? Well, can someone explain to me why we will NOT get to that point please? Perhaps though, the young are the lucky ones, simply because they will never know any different, perhaps some will be too young to remember the ice glaciers before they melt away in the heat of consumer driven smog.

Clearly, with one nation presidents like Bush at the helm, with self interest being taken to the point of obsession, and weak minded puppets like Brown and Blair of UK, there appears little chance of quick recovery. Reasons for optimism? Well, Bush is outgoing, and someone might well think seriously about shooting Gordon Brown and his energy minister….With every boom there is also bust, just look at the housing market predictions…So there is another one on the horizon with oil. But exactly when is the key question, how much further will we have to go…

Tags: oil prices, enviromant, global inflation

1 Comment to “The Heat Is On…”

1. Hotel Mark » Absence Makes The Heart…. — June 21, 2008 @ 11:01 am
   

   […] As to my own blog, I guess writing some posts about myself in between guitar reviews can be considered muddying the water a little, but I feel a blog without a personal input is almost the same as being faceless. After all, on my own site, I can be considered my own boss Naturally, a big talking point at present in blogging communities is the implications of the recent massive hikes in petrol and oil prices. I made a post in my other blog about that. […]

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