Ye Olde Swimming Hole

current, insightful, yet nostalgic

Monday, April 17, 2006

Oil Price High

Oil prices reached a new high today at over $70 per barrel. The threat of Iran becoming a nuclear country is one of the factors driving them up, but there are many other factors as well. China's booming economy is driving a thirst for oil there and turmoil in Africa is cutting off the supply of oil there.

There's no question we are in for changes in the near future with regards to energy. Either we will have to begin using alternative sources or get used to paying a lot more for oil, which will likely lead to our cutting back on consumption. Rises oil prices will likely lead to inflation and a slowing economy. It could get interesting.


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