Be frugal or be bankrupt

2011-04-09 12:56

The International Monetary Fund has ­painted a grim picture of where the oil price is going.

The institution reckons that the world has ­entered a period of steep increases in the oil price, where demand for the commodity outstrips ­supply.

It has predicted that the oil price could surge to the record high of $148 a barrel it hit in 2008, when consumers of the black gold found themselves ­confronted with shock.

Inflation also surged at those levels, forcing central banks to significantly hike interest rates. As a result, the global economy went into ­recession while job losses mounted.

Banks were forced to repossess houses and cars from cash-strapped consumers, who could no longer afford to repay their debts.

Already, the oil price is marching north and this week it climbed above $120 a barrel for the first time since 2008.

The oil-price onslaught has not been triggered by demand, but by the political unrest in the ­oil-producing Middle East and North Africa.

The oil price is likely to increase even further amid reports that the fighting in Libya has ­damaged that country’s oil fields.

Given these developments, South African ­consumers must tighten their belts as inflation and interest rates are bound to hit the roof.


Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/News
Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.