Oil Prices Hit Record Post Cold-War Highs

Don't say Scoop didn't warn you. World oil prices have today hit US$28 per barrel, up from US$25.80 last Thursday. John Howard reports.

On Sunday Scoop readers were warned that crude oil prices were on the up and up. We said analyst's were warning of US$30 a barrel by years end.

The world is now turning its attention to the inflationary implications.

Todays's rise to US$28 a barrel is the highest they have been since the 1991 Gulf War. The latest kick-along to prices has come from a suspension of all production by Iraq.

It will mean another three or four cents a litre at the pump with the indirect impact now becoming more noticeable.

The higher petrol price will feed into higher prices for just about everything from airline tickets, to plastics, to transported goods.

Take my word for it, inflationary pressures will also affect how much you pay for your mortgage because the central banks will in all likelihood impose another interest rate hike.

While that will help curb inflation, it will also slow down global economic growth, jeopardise corporate profits, jobs and the stock market.

Higher oil prices will reverberate around the world where some regions such as Asia are still recovering from severe recession.

The election promises you are all hearing may mean diddly squat in the coming months - don't say you weren't warned.

See also...

Will Petrol Prices Continue On The Up And Up?
21 November 1999, 3:28 pm
Article: John Howard

Be prepared for steeper petrol prices, already up 25 percent this year, before Christmas. Higher inflation, fuel surcharges on plane tickets, and higher costs for products ranging from plastic goods to higher transport costs are predicted. John Howard reports.The yearlong price surge that pushed crude oil to its highest level since the 1991 Gulf War has so far been but a small bump in the path of global economic growth.

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