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The extremely high Oil price is not conducive to Recovery...

The extremely high Oil price will ensure slowdown of transport, reducing most activities and
again likely to cause a slowdown.
Airlines in India have tried to battle-on on slim margins, but the oil price has  not gone in
their favour. Some have not been timely with their payments since January.
Kingfisher is the latest to announce problems  due to the high oil price.
The same is true for airlines throughout the world, same for public transport.
 
As Oil is one of the macro-drivers in the world economy, it is prudent for the OPEC countries
to  maintain prices  at levels where demand is maintained and affordable for all countries,
not only for the most developed. As it is, even most  developed nations find the high Oil
price a restraining  factor. 
 
Sheikh Al-Naimi of Saudi Arabia was on TV just a few months ago saying they would be
happy with a price in the $80/b b l range.  The Libyan Oil Minister Sheikh Al-Baraadi seemed
to confirm  the fairness of such a price.
 
So what has gone wrong? Why is the price still so high?
If the price remains so high, we will all be in problems.
Having recently gone through such a long recession, I trust the powers that be can
influence a fairer oil price, so the current Recovery does not falter again.
 
I hope Esteemed Readers will read this, and do what is necessary.
 
Till next time,
Duru-darshan.
 

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