Oil price hike sparks various reactions

Sat, 24 Nov 2007 12:05:12

The steep rise in oil prices has resulted in transfer of enormous amounts of wealth between oil producing and oil consuming countries.

“Response to the recent higher oil prices have been vastly varied in different parts of the world. China, Myanmar and South Korea have been the scenes of some unrest at gas stations or have experienced street demonstrations," the London-based al-Sharq al-Awsat reported.

While Saudi Arabia has launched a number of new petrochemical companies, Russia is pursuing its development plans with greater confidence.

Chad, on the other hand, is buying new weapons and Brazil is witnessing a faster growth rate, the paper said.

Meanwhile, the inflation rate in the US has started to rise and its trade balance is becoming more negative as the dollar continues to fall against other major currencies.

This is while the oil income per capita of the inhabitants of the oil-rich state of Alaska has risen to $1,654 this year from $547 last year.

The unprecedented increase in oil prices in the past two years has taken the annual earnings from petroleum exports of the producing countries to $700 billions.

Many analysts and politicians believe a new crisis in the Middle East could push crude prices to nearly $200 a barrel, which would have deep impacts on the world economy.

MMM/GM/RE