Wednesday, July 19, 2006

OPEC 'uncomfortable' with oil prices

Climb past mid-$70s seen as threat to global economy, petrol industry's health.

The latest spike in oil prices to near $80 a barrel is "very uncomfortable" and is hurting the world economy, the president of the Organization of the Petroleum Exporting Countries (OPEC) said on Wednesday.
High prices bring more revenue to OPEC in the short term, but exporters worry that sustained price increases dent global economic growth and encourage consuming nations to divert investment away from oil to alternative energy.

Good. If the prices stay high then the market will force us to look at alternative sources of energy. Bad for the oil producers, good for everyone else.


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