Crude Oil surpass the USD140 mark!!!

Oil prices mark another record in the market when the price of black gold soar across the USD141 per barrel in New York. Crude oil for August delivery rose as much as $2.07 a barrel, or 1.5 percent, to $141.71 in electronic trading on the New York Mercantile Exchange. It was at $141 at 10:59 a.m. London time. Brent crude oil rose as much $2.15, or 1.5 percent, to a record $141.98 on London's ICE Futures Europe exchange. The contract traded at $141.40 a barrel at 10:39 a.m.

Despite the drop in demand and a surplus of supply, the price of oil continue to rise amid the Libya threat to cut production and statement by OPEC's Prsident that price of oil will reached USD170 in the summer. The continuous rise in the oil prices is already make an impact in most part of the world when governments are forced to review the oil prices and workers has gone on strikes due to the rising cost of doing business. In Malaysia, the price of Petrol and Diesel have been adjsted to around RM2.70 per liter and RM2.58 per liter respectively, registering a hike of around 40% - 60%.

Inflation is on the rise, and people are starting to cut on spending to adjust to the rising cost of goods, especially foods and transportations. The rising cost of oil also start a snowball of price increase of other goods since most of the items rely on transportation to be sent to the proper destination. At the current rate, a major economic recession or economic depression seems inevitable. The problem will be a worldwide crisis and the government need to be proactive to ensure that these negative impact on the economy could be mitigated effectively. One of the most important issues to be addressed during recessions are the availability of food, medicals and energy. These essential supplies need to be adequately available to ensure that the people can still survive the economic situation and to ensure that there are no food crisis, or diesease outbreak or other humanitarian crisis. If the government have a comprehensive planning to address the food, medicine and energy issues, the government should be able to maintain a decent economic growth in the tme of economic recession.

Any economic recession will have a negative impact on the overall economic growth and the world will need to be on guard to wheather the economic storm lies ahead......

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