Thursday, January 03, 2008

$100 a barrel

The price of oil has now broken through the US$100 / barrel figure

As I mentioned a couple of months ago (when it looked like oil would break the barrier, but didn't), this doesn't mean the end of the world or an economic recession. The rise in oil prices has been more gradual than during the oil shocks of the 70's, and the increase proportionately less. During George Bush's reign, we've got used to high oil prices, so we'll cope. And on the plus side, high oil prices will help push the market towards alternatives and more efficient use, something which can only be a Good Thing.